1) An entrepreneur is looking to purchase an office building. She will make quarterly payments at thebeginning of the month. Her first payment will be $1000, and each subsequent payment will increase by 15%. (That is, the second payment is $1,150, and the third payment is $1322.50, and so on.) The loan will last 8 years. If the APR is 5%, how much did the office building cost?

2) A stock just paid a dividend of $4. The stock is expected to increase its dividend payment by 30% per year for the next 3 years. After that, dividends will grow at a rate of 12% forever. If the required rate of return is 14%, what is the price of the stock today?