Answer:
1st 46,398.83
2nd 49,646.74
3rd 53,122.02
4th 56,840.56
5th 60,819.40
Explanation:
given a growing annuity we have to solve for the installement
[tex]FV = \frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}[/tex]
FV = PV (1+r)^5 = 180,000 x 1.14^5 = 346,574.62
grow rate 0.07
interest rate 0.14
n = time 5
[tex]346,574.62 = C \times \frac{1-(1+0.07)^{5}\times (1+0.14)^{-5} }{0.14 - 0.07}[/tex]
C = 46398.8284
Now, to determiante the subsequent payment we multiply by the grow rate of 1.07