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Sinking fund doubt
Maths & Stats
Hello sir We know that sinking fund formula is A= P . A(n,i) Where A is future value P is periodic payment But what is A(n,i) equal to Is it 1) A[(1+i)^n-1/i] Or 2). (1+i)^n-1/i I got this doubt because of example 35 in icai In one place the value is 15.937 and in one place it is 3,00,000 in the same problem I have attached the screenshot for your consideration This is really confusing sir Please solve my problem
Answers (7)
CA Suraj Lakhotia Admin
One is Amount (n,i) Other is Annuity (n,i)
In the sinking fund formula it is amount(n,i) sir?(i.e (1+i)^n-1/i) ?
CA Suraj Lakhotia Admin
One is Amount (n,i) Other is Annuity (n,i)
Do we have any separate notation for the amount(n,i) and annuity(n,i) ? As if we use A(n,i) for both of them it may be little Confusing...
Thread Starter
Santosh palDo we have any separate notation for the amount(n,i) and annuity(n,i) ? As if we use A(n,i) for both of them it may be little Confusing...
Notation is same only. Usage is contextual. In sinking fund calculation, it's [((1+i)^n-1)/i]
