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A sinking fund is created for the redemption of debentures of $100,000/- at the end of 25 years. How much money should be provided out of profits each year for the sinking fund if the investment can earn interest @4% per annum?
A sinking fund is created for the redemption of debentures of $100,000/- at the end of 25 years. How much money should be provided out of profits each year for the sinking fund if the investment can earn interest @4% per annum?
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Previous article: A limited company intends to create a depreciation fund to replace at the end of his 25th year assets costing $100,000. Calculate the amount to be retained out of profits every year if the interest rate is 3%.
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Next article: A man retires at the age of 60 years and his employer gives him a pension of Rs. 1,200 a year paid in half-yearly installments for the rest of his life. Reckoning his expectation of life to be 13 years and that interest is at 4% p.a. payable half-yearly,
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