However if the amount present however amount of an

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Unformatted text preview: ever, if the amount present However, amount of an obligation is its future value, the concept of sinking fund amount future the becomes applicable. becomes OUTLINE OUTLINE Sinking Fund A. Finding the Sinking Fund Deposit: The periodic payment A required to accumulate a The periodic sum of F over n periods with interest charged at periods interest the rate of i per period is Formula: Applied Example: Sinking Fund Applied The proprietor of Carson Hardware has decided to set up a sinking fund for The sinking the purpose of purchasing a truck in 2 years’ time. purchasing It is expected that the truck will cost $30,000. It $30,0...
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