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Question

A person constructed a warehouse at a cost of Rs. 4,00,000, excluding the cost of land. The warehouse will become obsolete after 10 years. Find the amount of sinking fund to be annually deposited at the rate of 5% compound interest. The scrap value of the warehouse is 10% of the cost of purchase.

A.

Rs. 32,502 

B.

Rs. 28,571 

C.

Rs. 30,800 

D.

Rs. 25,980 

Answer ( Option B)

Rs. 28,571 

Solution


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