1. Suppose you borrow $100,000 now at 12 percent interest, compounded annually. You will repay the borrowed amount plus interest in a lump sum at the end of eight years. How much must you repay? Use Table 1 (page 650) and the basic equation PV = future amount × conversion factor. 

2. Assume the same facts as previously except that you will repay the loan in equal instalments at the end of each of eight years. How much must you repay each year? Use Table 2 (page 651) and the basic equation: PV = future annual amounts × conversion factor.