2. If you borrow $10,000 today at an interest rate of 12 percent, what equal annual payments (at year-end) will you be required to make (prin- cipal plus interest) so as to just repay the loan in eight years? (The typical home-mortgage borrowing agreement or installment purchase of an automobile or appliance follows this form.) Since the factors in Table 2A-2 indicate the value today of a stream of future payments or receipts, the inverse of the factors indicates the amounts, to be paid or received in the future, that are equivalent to a certain value today. In this ex- ample, the factor in the "12%" column and "year 8"row is 4.968; the stream of eight future annual year-end payments required to discharge a $10,000 loan, taken out today at 12 percent interest, is 1 10,000 X 4968 = $2,013