17 Valuation Tables · 17.1 Valuation tables

17.1.3 Annual sinking fund and its coefficient

The annual sinking fund (ASF) is the sum to set aside at the end of every year, at compound interest, so that it grows to Re 1 (or the capital to be recovered) in n years: s = i/[(1 + i)^n − 1].

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Key terms

  • annual sinking fund
  • sinking fund coefficient
  • Ic
  • i/((1+i)^n - 1)
  • accumulative rate
  • wasting asset
  • capital recovery
  • redemption of capital
  • outgoings
  • rent fixation
  • tax-adjusted sinking fund

What this note covers

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