A sinking fund is created for replacement of machine at the end of 20 years. Its present cost is ₹ 8,00,000. After 20 years cost of new machine…
CA Foundation · Quantitative Aptitude · PYQS · January 2026
A sinking fund is created for replacement of machine at the end of 20 years. Its present cost is ₹ 8,00,000. After 20 years cost of new machine would be ₹ 10,00,000, How much provision need to be made out of the profit each year provided sinking fund investments can earn interest at the rate of 7% pa? The scrap value of the machine at the end of 20 years would be ₹ 2,00,000. Given 1.07 20 = 3.8697.
Suggested Answer and Working Notes:
Correct Answer: Option (C)
C. ₹19,514
Topics: Part-A: Business Mathematics
Related Questions in this Topic
- lim x→0 log(1+x) / x is equal to ______
- The series 1 2 + 2 2 + 3 2 + 4 2 + ... + 10 2 is equal to
- Which term of the series 3, √3, 1, 1 / √3 , ...... is 1 / 243 ?
- Following are the marks of 10 students:82, 79, 56, 79, 85, 95, 55, 72, 70, 66. Find coefficient of range.
- Two variables x and y are related by 5x + 6y + 9 = 0 and x = 6, then y is