A sinking fund is created for the redemption of debentures of ₹2,00,000 at the end of 25 years. How much money should be provided out of profits each year for the sinking fund, if investment can earn interest 5% per annum? [Given ]
A sinking fund is created for the redemption of debentures of ₹2,00,000 at the end of 25 years. How much money should be provided out of profits each year for the sinking fund, if investment can earn interest 5% per annum? [Given ]
Solution
✅ Correct Option: 2
For a sinking fund, , so .
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