Question
Sarah wants to give a special sweet 17 birthday present to her daughter. Therefore, she plans to save money from now. Her daughter is currently
Sarah wants to give a special sweet 17 birthday present to her daughter. Therefore, she plans to save money from now. Her daughter is currently 12 years old and she loves to play music. Her dream piano is priced at $3750. Sarah only has $1000 and she will put it in the bank with an annual interest rate of 6% compounded monthly. She plans to save another $1000 in the same account after 2 years. She wants to put the last saving 1 year before the 17th birthday at the same account, how much does she have to put in order for her to be able to buy the piano on her daughters 17th birthday?
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