Question One: Linda, a recent actuarial science graduate from University of Nairobi has just signed a five-year employment contract with Nomads Insurance Company. Her net monthly salary will be Kenya shillings one hundred thousand. The company will pay the same amount each month during the contract period. Linda plans to save twenty percent of the net salary at the end of the first month of employment. After the first month, she plans to grow the savings each month by ten percent for the remaining months of the contract period. Assume that the savings will earn an annual return of fifteen percent.

Required:

Compute the amount that Linda will have accumulated in the savings account at the expiry of the contract period.