Sinking Fund for Buildings Calculator

Engineering Chemistry Financial Health More >>

↳

Civil Chemical Engineering Electrical Electronics More >>

⤿

Construction Practice, Planning and Management Bridge and Suspension Cable Coastal and Ocean Engineering Columns More >>

⤿

Valuation Engineering Basic Formulas in Construction Planning and Management Construction Management Project Evaluation and Review Technique

✖Annual Installment means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments.ⓘ Annual Installment [I_a]			+10% -10%
✖Coefficient of Sinking Fund is the ratio of the annual installment required to that of the amount of the sinking fund.ⓘ Coefficient of Sinking Fund [I_c]			+10% -10%

✖Sinking Fund is the amount that has to be set aside out of the gross income so that at the end of the lifetime of the building, the fund should accumulate to the initial cost of the building.ⓘ Sinking Fund for Buildings [S]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Valuation Engineering Formulas PDF PDF Image

Sinking Fund for Buildings Solution

STEP 0: Pre-Calculation Summary

Formula Used

Sinking Fund = Annual Installment/Coefficient of Sinking Fund
S = I_a/I_c
This formula uses 3 Variables

Variables Used

Sinking Fund - Sinking Fund is the amount that has to be set aside out of the gross income so that at the end of the lifetime of the building, the fund should accumulate to the initial cost of the building.
Annual Installment - Annual Installment means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments.
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.

STEP 1: Convert Input(s) to Base Unit

Annual Installment: 600 --> No Conversion Required
Coefficient of Sinking Fund: 0.075 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

S = I_a/I_c --> 600/0.075

Evaluating ... ...

S = 8000

STEP 3: Convert Result to Output's Unit

8000 --> No Conversion Required

FINAL ANSWER

8000 <-- Sinking Fund

(Calculation completed in 00.004 seconds)

You are here -

Home » Engineering » Civil » Construction Practice, Planning and Management » Valuation Engineering » Sinking Fund for Buildings

Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

Mithila Muthamma PA has verified this Calculator and 700+ more calculators!

< Valuation Engineering Calculators

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

Sinking Fund for Buildings Formula

LaTeX Go

Sinking Fund = Annual Installment/Coefficient of Sinking Fund
S = I_a/I_c

What is the Purpose of a Sinking Fund?

A sinking fund is a strategic way to save money by setting aside a little bit each month. Sinking funds work like this: Every month, you'll set money aside in one or multiple categories to be used at a later date. With a sinking fund, you save up a small amount each month for a certain block of time before you spend.

What are the Advantages of Sinking Funds?

1. Brings in investors: Investors are very well aware that companies or organizations with a large amount of debt are potentially risky. However, once they know that there is an established sinking fund, they will see a certain level of protection for them so that in the case of a default or bankruptcy, they will still be able to get their investment back.
2. The possibility of lower interest rates: A company with poor credit ratings will find it difficult to attract investors unless they offer higher interest rates. A sinking fund offers alternative protection for investors so that companies can offer lower interest rates.
3. Stable finances: A company’s economic situation is not always definite, and certain financial issues can shake its stable ground. However, with a sinking fund, the ability of a company to repay its debts and buy back bonds will not be compromised.

How to Calculate Sinking Fund for Buildings?

Sinking Fund for Buildings calculator uses Sinking Fund = Annual Installment/Coefficient of Sinking Fund to calculate the Sinking Fund, The Sinking Fund for Buildings formula is defined as the amount which has to be set aside at fixed intervals of time out of the gross income so that at the end of a lifetime of a building, the fund should accumulate to the initial cost of building. Sinking Fund is denoted by S symbol.

How to calculate Sinking Fund for Buildings using this online calculator? To use this online calculator for Sinking Fund for Buildings, enter Annual Installment (I_a) & Coefficient of Sinking Fund (I_c) and hit the calculate button. Here is how the Sinking Fund for Buildings calculation can be explained with given input values -> 8000 = 600/0.075.

FAQ

What is Sinking Fund for Buildings?

The Sinking Fund for Buildings formula is defined as the amount which has to be set aside at fixed intervals of time out of the gross income so that at the end of a lifetime of a building, the fund should accumulate to the initial cost of building and is represented as S = I_a/I_c or Sinking Fund = Annual Installment/Coefficient of Sinking Fund. Annual Installment means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments & Coefficient of Sinking Fund is the ratio of the annual installment required to that of the amount of the sinking fund.

How to calculate Sinking Fund for Buildings?

The Sinking Fund for Buildings formula is defined as the amount which has to be set aside at fixed intervals of time out of the gross income so that at the end of a lifetime of a building, the fund should accumulate to the initial cost of building is calculated using Sinking Fund = Annual Installment/Coefficient of Sinking Fund. To calculate Sinking Fund for Buildings, you need Annual Installment (I_a) & Coefficient of Sinking Fund (I_c). With our tool, you need to enter the respective value for Annual Installment & Coefficient of Sinking Fund and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search