Question
Kiara is turning 25 today. She decides that she will start saving towards the purchase of a house that she wants to buy on her
Kiara is turning 25 today. She decides that she will start saving towards the purchase of a house that she wants to buy on her 35th birthday. At that time (i.e., on her 35th birthday), she would like to make a down-payment on the house.
To afford this down-payment, Kiara uses a savings account paying an annual rate of 5%. For the next ten years, she plans to make annual contributions to the savings account, with the first contribution of $10,000 to be made in one year and her last contribution to be made on her 35th birthday. She also plans to increase the size of each contribution by 4% per year.
How much money will be in Kiara's savings account on her 35th birthday, immediately after her last contribution to the account?
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