Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

As a factory owner, you have decided to purchase a heavy machinery after 10 years. Its expected price will be ₹1 crore. For this, you set aside a certain amount at the end of every year. Which of the following financial tools fits best for this purpose ?

Options:

Linking Fund

Mutual Fund

Sinking Fund

Savings Account

Correct Answer:

Sinking Fund