Problem 8:

Given the following data: calculate the future value of the growing annuity.

Term of Investment	5
Required Return	8%
Growth Rate	6%
First Payment	$1,000

[Note: Second payment is 6 % more than the First payment]

Problem 9:

John House has taken a $100,000 mortgage on his warehouse at an interest rate of 8% per year. If the mortgage calls for five equal annual (end of the year) payments, what is the amount of each payment?

(a) Develop a loan amortization schedule (use the table format shown below)

(b) What is total amount of interest paid for the life of the mortgage?

Year	Beginning Balance	Annual Payment	Interest Paid	Principal Paid	Ending Balance
Totals	XXXXXXXXXXXXXXX				XXXXXXXXXXXXXXXX