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Coefficient of Annual Sinking Fund Formula

GoCoefficient of Annual Sinking Fund given Sinking Fund Formula

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Coefficient of Sinking Fund is the ratio of the annual installment required to that of the amount of the sinking fund. Check FAQs

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

I_c - Coefficient of Sinking Fund?I_r - Rate of Interest?T - Number of Years Money is Invested?

Coefficient of Annual Sinking Fund Example

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Here is how the Coefficient of Annual Sinking Fund equation looks like with Values.

Here is how the Coefficient of Annual Sinking Fund equation looks like with Units.

Here is how the Coefficient of Annual Sinking Fund equation looks like.

0.0075 = \frac{10}{{(1 + 10)}^{3} - 1}

0.0075 = \frac{10}{{(1 + 10)}^{3} - 1}

0.0075 = \frac{10}{{(1 + 10)}^{3} - 1}

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Coefficient of Annual Sinking Fund Solution

Follow our step by step solution on how to calculate Coefficient of Annual Sinking Fund?

FIRST Step Consider the formula

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

Next Step Substitute values of Variables

∴

I c = \frac{10}{{(1 + 10)}^{3} - 1}

Next Step Prepare to Evaluate

∴

I c = \frac{10}{{(1 + 10)}^{3} - 1}

Next Step Evaluate

∴

I c = 0.0075187969924812

LAST Step Rounding Answer

∴

I c = 0.0075

Coefficient of Annual Sinking Fund Formula Elements

Variables

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.

Symbol: I_c

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Coefficient of 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 Coefficient of Sinking Fund

Go Coefficient of Annual Sinking Fund given Sinking Fund

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

Other formulas in Valuation Engineering category

Go Sinking Fund for Buildings

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

Go Annual Installment given Sinking Fund

I a = I c \cdot S

Go Annual Installment for Sinking Fund

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

Go Years Purchase

Y = \frac{100}{I r}

How to Evaluate Coefficient of Annual Sinking Fund?

Coefficient of Annual Sinking Fund evaluator uses Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1) to evaluate 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 I_c symbol.

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

FAQs on Coefficient of Annual Sinking Fund

What is the formula to find Coefficient of Annual Sinking Fund?

The formula of Coefficient of Annual Sinking Fund is expressed as Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). Here is an example- 0.007519 = 10/((1+10)^3-1).

How to calculate Coefficient of Annual Sinking Fund?

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

What are the other ways to Calculate Coefficient of Sinking Fund?

Here are the different ways to Calculate Coefficient of Sinking Fund-

Coefficient of Sinking Fund=Annual Installment/Sinking Fund

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Coefficient of Annual Sinking Fund Formula

​GoCoefficient of Annual Sinking Fund given Sinking Fund Formula

Coefficient of Annual Sinking Fund Example

Coefficient of Annual Sinking Fund Solution

Coefficient of Annual Sinking Fund Formula Elements

Other Formulas to find Coefficient of Sinking Fund

Other formulas in Valuation Engineering category

How to Evaluate Coefficient of Annual Sinking Fund?

FAQs on Coefficient of Annual Sinking Fund

Variable Name

GoCoefficient of Annual Sinking Fund given Sinking Fund Formula