1) You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $5,000 at the end of the first year and you anticipate that your annual saving will increase by 10% annually thereafter. If the annual interest rate is 7%, how much would you have for the down payment at the end of year 3?

2) Six years from today you need $10,000. You plan to deposit $1,500 annually with the first payment to be made a year from today, in an account that pays an 8% interest rate. Your last deposit will be for less than $1,500 if less is needed to have the $10,000 in 6 years. How large will your last payment be?