Choose the correct statement about Sinking Fund?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → In this fund, a fixed amount at regular intervals is deposited for a fixed terms **
A sinking fund is a fund created by setting aside a fixed amount of money at regular intervals for a specified period, usually to repay a debt or replace an asset in the future.
Correct option: In this fund, a fixed amount at regular intervals is deposited for a fixed term.