A machine costs Rs 520000 with an estimated life of 25 years A sinking fund is created to replace - Maths - Relations and Functions

Question

A machine costs Rs 520000 with an estimated life of 25 years A
sinking fund is created to replace it by a new model at 25% higher
cost after 25 years with a scrap value realization of Rs 25000 What
amount should be set aside every year if the sinking fund
investments accumulate at 3 5% compound interest p a ?
A 16000
B 16500
C 16050
D 16005

Anup Raj · Accepted Answer