The growing annuity payment, when the present value is known, is used to determine the initial payment of a series of periodic payments that grow at a proportionate rate.
EXAMPLE
Joe makes an initial payment of $100 and the payments are expected to grow each period at 10%. Therefore, the second payment would be $110 ($100 x [1 + g]), and the third payment would be $121 ($110 x [1 + g]).