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Sinking Fund for Buildings Formula

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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. Check FAQs

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

S - Sinking Fund?I_a - Annual Installment?I_c - Coefficient of Sinking Fund?

Sinking Fund for Buildings Example

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

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

Here is how the Sinking Fund for Buildings equation looks like.

8000 = \frac{600}{0.075}

8000 = \frac{600}{0.075}

8000 = \frac{600}{0.075}

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Sinking Fund for Buildings Solution

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

FIRST Step Consider the formula

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

Next Step Substitute values of Variables

∴

S = \frac{600}{0.075}

Next Step Prepare to Evaluate

∴

S = \frac{600}{0.075}

LAST Step Evaluate

∴

S = 8000

Sinking Fund for Buildings Formula Elements

Variables

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

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

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

Other formulas in Valuation Engineering category

Go Annual Installment given Sinking Fund

I a = I c \cdot S

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 Annual Installment for Sinking Fund

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

How to Evaluate Sinking Fund for Buildings?

Sinking Fund for Buildings evaluator uses Sinking Fund = Annual Installment/Coefficient of Sinking Fund to evaluate 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 evaluate Sinking Fund for Buildings using this online evaluator? To use this online evaluator for Sinking Fund for Buildings, enter Annual Installment (I_a) & Coefficient of Sinking Fund (I_c) and hit the calculate button.

FAQs on Sinking Fund for Buildings

What is the formula to find Sinking Fund for Buildings?

The formula of Sinking Fund for Buildings is expressed as Sinking Fund = Annual Installment/Coefficient of Sinking Fund. Here is an example- 8000 = 600/0.075.

How to calculate Sinking Fund for Buildings?

With Annual Installment (I_a) & Coefficient of Sinking Fund (I_c) we can find Sinking Fund for Buildings using the formula - Sinking Fund = Annual Installment/Coefficient of Sinking Fund.

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Sinking Fund for Buildings Formula

Sinking Fund for Buildings Example

Sinking Fund for Buildings Solution

Sinking Fund for Buildings Formula Elements

Other formulas in Valuation Engineering category

How to Evaluate Sinking Fund for Buildings?

FAQs on Sinking Fund for Buildings

Variable Name