A fund which is created to accumulate mo

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Target Exam

CUET

Subject

-- Mathematics - Section B1

Chapter

Applications of Derivatives

Question:

A fund which is created to accumulate money over the years to discharge a future obligation is called

Options:

Bond

Loan

Cash Flow

Sinking Fund

Correct Answer:

Sinking Fund

Explanation:

The correct answer is Option (4) → Sinking Fund

A Sinking fund is fund set aside over time to accumulate money for future obligation such as repaying debt and etc.