The calculation of present value and final value of ordinary annuity and its relationship with sinking fund and capital recovery. Example 1 If (P/F, 8%, 5) = .686 (F/P, 8%, 5) = 1.4693 (P/A, 8%, 5) = 3.9927 (F/A, 8%, 5)=5.8666, then I = 8. A.1.4693b..686c..255d..175 Answer C Analysis of the reciprocal capital recovery coefficient and annuity present value coefficient Calculation of the present value of the prepayment annuity and its relationship with the present value of ordinary annuity. Example 1 When calculating the final value of annuity in advance, the following formula () is applied. A.A(P/A, I, N) (1+I) B.A (F/A, I, N) (1+I) C.A (P/F, I, N) (1+I) D.A (F/P, I, N). Example 1 An enterprise deposited 5, yuan at the beginning of the year, and its actual interest rate is () when the annual interest rate is 12%, the term is 5 years and the interest is compounded every six months. A. 24% B. 12.36% C. 6% D. 12.25% Answer B Analytic real interest rate =(1+12%/2) -1=12.36%.