Question

Winston typically spends about $200 per year playing the lottery. If he took that same amount of money, for 30 years, and invested it in an index fund earning an average of 6%, approximately how much money would Winston have?

Answer 1

If Winston invested $200 every year at 6% for 30 years, the $200 would be an annuity and the future value of an Annuity is calculated

as:= Annuity x ( (1 + rate) ^ number of years - 1) / rate = 200 x ( ( 1 + 6%) ³⁰ - 1) / 6%= $15,811.64 Winston

would have $15,811.64

Step-by-step explanation:

math is proof