Suppose Amanda wants to have $800,000 in her IRA at the end of 30 years. She chooses to invest in an annuity that pays
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All the components in the state vector need to sum to 1. You're given that component corresponding to state 1 is 0.2, and that the component for state 3 is 0.
That leaves states 2 and 4, for which you're told that the component for state 2 is four times as large. If
is the component for state 
, then you have
which means
. So the state vector is 
.
That leaves states 2 and 4, for which you're told that the component for state 2 is four times as large. If
which means