Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A company intends to create a sinking fund to replace at the end of $20^{th}$ year assets costing ₹2,50,000. Then the value of the amount to be retained out of profits every year if the interest rate is 5% is : (Given $(1.05)^{20}= 2.6532)$

Options:

₹7,156.09

₹7,599.09

₹7,561.09

₹7,651.09

Correct Answer:

₹7,561.09