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A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum?
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A company establishes a sinking fund to provide for the payment rs 200...
Problem Statement:
A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20 years. Contributions to the fund are to be made at the end of every year. Find the amount of each deposit if the interest is 5% per annum.
Solution:
To determine the amount of each deposit that needs to be made to the sinking fund, we can use the sinking fund formula:
S = (R[(1+i)^n-1])/i
where S is the sinking fund amount, R is the annual deposit, i is the interest rate per period, and n is the number of periods.
We are given that the debt amount to be paid is Rs. 200,000 and it is maturing in 20 years. Also, the interest rate is 5% per annum. Therefore, we can calculate the sinking fund amount as follows:
S = 200,000
i = 5%/year
n = 20 years
S = (R[(1+i)^n-1])/i
200,000 = (R[(1+5%)^20-1])/5%
200,000 = (R[4.66096])/0.05
R = 8,557.98
Therefore, the amount of each deposit that needs to be made to the sinking fund is Rs. 8,557.98 per year.
Conclusion:
In conclusion, the sinking fund is established to provide for the payment of debt maturing in the future. The amount of each deposit is calculated using the sinking fund formula, which takes into account the interest rate, the number of periods, and the sinking fund amount. In this case, the amount of each deposit is Rs. 8,557.98 per year, assuming an interest rate of 5% per annum.
A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20 years. Contributions to the fund are to be made at the end of every year. Find the amount of each deposit if the interest is 5% per annum.
Solution:
To determine the amount of each deposit that needs to be made to the sinking fund, we can use the sinking fund formula:
S = (R[(1+i)^n-1])/i
where S is the sinking fund amount, R is the annual deposit, i is the interest rate per period, and n is the number of periods.
We are given that the debt amount to be paid is Rs. 200,000 and it is maturing in 20 years. Also, the interest rate is 5% per annum. Therefore, we can calculate the sinking fund amount as follows:
S = 200,000
i = 5%/year
n = 20 years
S = (R[(1+i)^n-1])/i
200,000 = (R[(1+5%)^20-1])/5%
200,000 = (R[4.66096])/0.05
R = 8,557.98
Therefore, the amount of each deposit that needs to be made to the sinking fund is Rs. 8,557.98 per year.
Conclusion:
In conclusion, the sinking fund is established to provide for the payment of debt maturing in the future. The amount of each deposit is calculated using the sinking fund formula, which takes into account the interest rate, the number of periods, and the sinking fund amount. In this case, the amount of each deposit is Rs. 8,557.98 per year, assuming an interest rate of 5% per annum.
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A company establishes a sinking fund to provide for the payment rs 200...
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A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum?
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A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum?.
A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company establishes a sinking fund to provide for the payment rs 200000 debt maturing in 20years contribution s to the fund are to be made at the end of every year.find the amount of each deposit if interest is 5 percentage per annum?.
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