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Annual Installment for Sinking Fund Formula

GoAnnual Installment given Sinking Fund Formula

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Annual Installment means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments. Check FAQs

I a = S \cdot \frac{I r}{{(1 + I r)}^{T} - 1}

I_a - Annual Installment?S - Sinking Fund?I_r - Rate of Interest?T - Number of Years Money is Invested?

Annual Installment for Sinking Fund Example

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Here is how the Annual Installment for Sinking Fund equation looks like with Values.

Here is how the Annual Installment for Sinking Fund equation looks like with Units.

Here is how the Annual Installment for Sinking Fund equation looks like.

60.1504 = 8000 \cdot \frac{10}{{(1 + 10)}^{3} - 1}

60.1504 = 8000 \cdot \frac{10}{{(1 + 10)}^{3} - 1}

60.1504 = 8000 \cdot \frac{10}{{(1 + 10)}^{3} - 1}

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Annual Installment for Sinking Fund Solution

Follow our step by step solution on how to calculate Annual Installment for Sinking Fund?

FIRST Step Consider the formula

I a = S \cdot \frac{I r}{{(1 + I r)}^{T} - 1}

Next Step Substitute values of Variables

∴

I a = 8000 \cdot \frac{10}{{(1 + 10)}^{3} - 1}

Next Step Prepare to Evaluate

∴

I a = 8000 \cdot \frac{10}{{(1 + 10)}^{3} - 1}

Next Step Evaluate

∴

I a = 60.1503759398496

LAST Step Rounding Answer

∴

I a = 60.1504

Annual Installment for Sinking Fund Formula Elements

Variables

Annual Installment

Annual Installment means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments.

Symbol: I_a

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annual Installment

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.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sinking Fund

Rate of Interest

The Rate of Interest is the percent of principal amount charged for the due period.

Symbol: I_r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Interest

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.

Symbol: T

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Years Money is Invested

Other Formulas to find Annual Installment

Go Annual Installment given Sinking Fund

I a = I c \cdot S

Other formulas in Valuation Engineering category

Go Sinking Fund for Buildings

S = \frac{I a}{I c}

Go Coefficient of Annual Sinking Fund

I c = \frac{I r}{{(1 + I r)}^{T} - 1}

Go Coefficient of Annual Sinking Fund given Sinking Fund

I c = \frac{I a}{S}

Go Years Purchase

Y = \frac{100}{I r}

How to Evaluate Annual Installment for Sinking Fund?

Annual Installment for Sinking Fund evaluator uses Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1) to evaluate the Annual Installment, The Annual Installment for Sinking Fund formula is defined as a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments, except to the extent that any increase in the amount reflects reasonable earnings through the date the amount is paid. Annual Installment is denoted by I_a symbol.

How to evaluate Annual Installment for Sinking Fund using this online evaluator? To use this online evaluator for Annual Installment for Sinking Fund, enter Sinking Fund (S), Rate of Interest (I_r) & Number of Years Money is Invested (T) and hit the calculate button.

FAQs on Annual Installment for Sinking Fund

What is the formula to find Annual Installment for Sinking Fund?

The formula of Annual Installment for Sinking Fund is expressed as Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). Here is an example- 60.15038 = 8000*10/((1+10)^3-1).

How to calculate Annual Installment for Sinking Fund?

With Sinking Fund (S), Rate of Interest (I_r) & Number of Years Money is Invested (T) we can find Annual Installment for Sinking Fund using the formula - Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1).

What are the other ways to Calculate Annual Installment?

Here are the different ways to Calculate Annual Installment-

Annual Installment=Coefficient of Sinking Fund*Sinking Fund

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Annual Installment for Sinking Fund Formula

​GoAnnual Installment given Sinking Fund Formula

Annual Installment for Sinking Fund Example

Annual Installment for Sinking Fund Solution

Annual Installment for Sinking Fund Formula Elements

Other Formulas to find Annual Installment

Other formulas in Valuation Engineering category

How to Evaluate Annual Installment for Sinking Fund?

FAQs on Annual Installment for Sinking Fund

Variable Name

GoAnnual Installment given Sinking Fund Formula