Home › CA Foundation › Quantitative Aptitude › Compound Interest › Sinking fund deposit at end of each year to accu…
Sinking fund deposit at end of each year to accumulate Rs.10000 in 5 years at 8% per annum equals approximately
ARs.1705
BRs.1800
CRs.2000
DRs.1500
Answer & Solution
Correct answer: A. Rs.1705
1. SFV = D * [((1.08)^5 - 1) / 0.08] where D is annual deposit.
2. (1.08)^5 = 1.4693, so factor = (0.4693/0.08) = 5.867.
3. 10000 = D * 5.867.
4. D = 10000/5.867 = 1704.6, approximately Rs.1705.
_Source: ICAI BoS Foundation Paper 3, Ch 4 'Math of Finance', p.16_
Related questions
If a sum at compound interest doubles in 6 years, in how many years will it become 8 timesIf the simple interest on a sum at 6% p.a. for 3 years is ₹540, what is the compound interIf CI for 1st year is ₹500 and for 2nd year is ₹525 on a certain sum at the same rate, finThe compound interest on ₹16,000 for 3 years at 5% p.a. compounded annually is:At what rate compounded annually does ₹4,000 amount to ₹4,840 in 2 years?A sum amounts to ₹6,050 at 10% p.a. compound interest in 2 years. Find the principal.Find the difference between CI and SI on ₹10,000 at 10% p.a. for 2 years.The compound interest on ₹5,000 at 10% p.a. for 2 years compounded annually is: