25 November 2011
ab ltd crated a sinking fund to redeem its prefernce capital of rs 5 lakh issued on 6 april 2004 and will mature on 5 april 2015. the first annual payment was made on 6 april 1994. the company will make equal annual payment and expects that the fund will earn 12% per year , how much will be the amount of sinking fund payments
26 November 2011
The Calculation will be held as follows; A(CVFAn,i)1+I)=500000 A(CVFA12,.012)(1.12)=500000 A(24.133)(1.12)=500000 A(27.02896)=500000 A=500000/27.0289618 A=18496.68
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