A furniture store offers a one-year monthly installment plan for a set of living room furniture. The payment for the first month is $65, and then it increases by 5% each month for the rest of the year. How much money is paid after 12 months? Round your answer to the nearest dollar.

The 12 monthly payments form a geometric sequence: the first is $65, and each following payment is 1.05 times the previous one. Their total is $65 × (1.05¹² − 1) ÷ 0.05 ≈ $1,034.61. Rounded to the nearest dollar, the total paid is $1,035, choice C.

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