Basic Relationships in Interest Tables Study Appendix 9. Then answer the following questions: 1. Suppose you borrow $20,000 now at 16% interest compounded annually. The borrowed amount plus interest will be repaid in a lump sum at the end of 6 years. How much must be repaid? Use Table 9A-1 and basic equation: FV Present amount X Future value factor. 2. Repeat requirement 1 using Table 9A-2 and the basic equation: PV = Future amount X Present value factor. 3. Assume the same facts as in requirement 1, except that the loan will be repaid in equal install- ments at the end of each of 5 years. How much must be repaid each year? Use Table 9A-3 and the basic equation: PV Future annual amounts x Conversion factor. =