A person creates a sinking fund to accumulate ₹60,000 in 5 years to buy a bike. The amount to be deposited at the end of every quarter with a 12% rate of interest compounded quarterly is :

$\left(Use \frac{0.03}{(1.03)^{20}-1}=0.0372\right)$

₹2232

Amount required $=60000$.

Rate of interest $=12\%$ per annum compounded quarterly.

Rate per quarter $=3\%=0.03$.

Time $=5$ years $=20$ quarters.

Sinking fund formula:

$S=R\left(\frac{(1+i)^n-1}{i}\right)$

So

$R=S\left(\frac{i}{(1+i)^n-1}\right)$

Given $\frac{0.03}{(1.03)^{20}-1}=0.0372$.

$R=60000\times0.0372$

$R=2232$

final answer: ₹2232 per quarter