SSC JE Civil Engineering 2018 Set 3 Solved Paper

Question : 118 of 200

Marks: +1, -0

An electric generator is installed in the building at a cost of Rs. 50,000. Calculate the annual sinking fund (Rs.) required to be deposited to accumulate the whole amount of 5% compound interest. Assume the life of the electric generator as 10 years.

1535
30695
3975
79503

Validate

Solution:

Annual sinking fund

(I)={pi}/{(1+i)^n-1}

Given - Initial Investment (P) =50,000
Compound interest = 5%
Years(n) = 10

I = 2500/{(1+0.05)^10-1}

I=2500/{(1.05)^10-1}

I = 3975.2 ≈ 3475/-

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