Coefficient of Annual Sinking Fund Solution

STEP 0: Pre-Calculation Summary
Formula Used
Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Ic = Ir/((1+Ir)^T-1)
This formula uses 3 Variables
Variables Used
Coefficient of Sinking Fund - Coefficient of Sinking Fund is the ratio of the annual installment required to that of the amount of the sinking fund.
Rate of Interest - The Rate of Interest is the percent of principal amount charged for the due period.
Number of Years Money is Invested - The Number of Years Money is Invested is the total number of years for which the money is invested.
STEP 1: Convert Input(s) to Base Unit
Rate of Interest: 10 --> No Conversion Required
Number of Years Money is Invested: 3 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Ic = Ir/((1+Ir)^T-1) --> 10/((1+10)^3-1)
Evaluating ... ...
Ic = 0.0075187969924812
STEP 3: Convert Result to Output's Unit
0.0075187969924812 --> No Conversion Required
FINAL ANSWER
0.0075187969924812 0.007519 <-- Coefficient of Sinking Fund
(Calculation completed in 00.004 seconds)

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Coefficient of Annual Sinking Fund
​ LaTeX ​ Go Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Coefficient of Annual Sinking Fund given Sinking Fund
​ LaTeX ​ Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund
Annual Installment given Sinking Fund
​ LaTeX ​ Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund
Sinking Fund for Buildings
​ LaTeX ​ Go Sinking Fund = Annual Installment/Coefficient of Sinking Fund

Coefficient of Annual Sinking Fund Formula

​LaTeX ​Go
Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Ic = Ir/((1+Ir)^T-1)

What is an Annual Installment?

Annual Installments means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments, except to the extent any increase in the amount reflects reasonable earnings through the date the amount is paid.

How to Calculate Coefficient of Annual Sinking Fund?

Coefficient of Annual Sinking Fund calculator uses Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1) to calculate the Coefficient of Sinking Fund, The Coefficient of Annual Sinking Fund formula is defined as the ratio of the annual installment to that of the sinking fund amount. Coefficient of Sinking Fund is denoted by Ic symbol.

How to calculate Coefficient of Annual Sinking Fund using this online calculator? To use this online calculator for Coefficient of Annual Sinking Fund, enter Rate of Interest (Ir) & Number of Years Money is Invested (T) and hit the calculate button. Here is how the Coefficient of Annual Sinking Fund calculation can be explained with given input values -> 0.007519 = 10/((1+10)^3-1).

FAQ

What is Coefficient of Annual Sinking Fund?
The Coefficient of Annual Sinking Fund formula is defined as the ratio of the annual installment to that of the sinking fund amount and is represented as Ic = Ir/((1+Ir)^T-1) or Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). The Rate of Interest is the percent of principal amount charged for the due period & The Number of Years Money is Invested is the total number of years for which the money is invested.
How to calculate Coefficient of Annual Sinking Fund?
The Coefficient of Annual Sinking Fund formula is defined as the ratio of the annual installment to that of the sinking fund amount is calculated using Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). To calculate Coefficient of Annual Sinking Fund, you need Rate of Interest (Ir) & Number of Years Money is Invested (T). With our tool, you need to enter the respective value for Rate of Interest & Number of Years Money is Invested and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Coefficient of Sinking Fund?
In this formula, Coefficient of Sinking Fund uses Rate of Interest & Number of Years Money is Invested. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Coefficient of Sinking Fund = Annual Installment/Sinking Fund
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