Federal Housing Administration (FHA) provides graduated payment mortgages for homebuyers who currently have low to moderate incomes but expect them to increase substantially over the next 5 to 10 years. One of the plans provided by the FHA is such that the payments increase by 5% annually in the first 5 years of the loan, and stays constant thereafter at the year 5 level till its maturity in year 30. The mortgage is fully amortized (no ballon payment at the end). If the contractual interest rate is 6%, what are the annual payments in years 1-10? What is the outstanding loan balance at the end of the 5th year? Assume that the outstanding loan balance is $250,000 and payments are made at the end of each year.