Nor does one make a down payment on a bank loan.
When Linda graduated from college, she received an academic award that carried a $500 cash award. On her 22nd birthday, she used the money to purchase additional stock. She started her first job immediately after graduation and decided to save $50 each month. On her 23rd birthday she used the $600 (total of her monthly amount) savings to purchase new stock. Each year thereafter she increased her total of her savings by $100 and, on her birthday each year, used her savings to purchase additional stock. Linda continued to learn about stocks and managed her accounts carefully. On her 35th birthday she looked back and saw that her stock had appreciated at 11% during the first year after college and that the rate of appreciation increased by .25% each year thereafter. At age 34, she cashed in enough stock to make down payment on a bank loan to purchase her business.
What was her stock worth on her 34th birthday?
