The difference between the two is obvious. If the final value of FA in ordinary annuity is known, it is a problem to calculate the annual sinking fund. If the present value of PA in ordinary annuity is known, calculating annuity A belongs to the calculation of annual capital recovery.

Here is an example:

Example: 1 someone plans to pay off the debt of 10000 yuan in five years and deposit the same amount in the bank at the end of each year from now on. Suppose the bank deposit interest rate is 10%. How much do you need to deposit every year?

10000 yuan in this question is the cash outflow after five years, which means that the sum of the principal and interest of the funds deposited in the bank at the end of each year after five years should be equal to 10000 yuan. Therefore, this topic is "knowing the final value of ordinary annuity and seeking annuity A", that is, calculating the annual sinking fund.

The answer is: 10000/(F/A, 10%, 5) = 1638 (yuan).

Example 2 assumes that the enterprise borrows 20,000 yuan, the interest rate is 65,438+00%, and the loan period is 65,438+00 years. How much should the enterprise return at the end of each year?

The 20,000 yuan in this topic is the current cash inflow, that is to say, the present value of "the amount that should be returned at the end of each year in 10" is 20,000 yuan, so this topic is "seeking annuity A from the known present value of ordinary annuity", that is, calculating the annual capital recovery.

The answer is: 20000/(P/A, 10%, 10) = 3255 (yuan).