Coefficient of Annual Sinking Fund Solution

STEP 0: Pre-Calculation Summary
Formula Used
Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Ic = Ir/((1+Ir)^T-1)
This formula uses 3 Variables
Variables Used
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.
Rate of Interest - The Rate of Interest is the percent of principal amount charged for the due period.
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.
STEP 1: Convert Input(s) to Base Unit
Rate of Interest: 10 --> No Conversion Required
Number of Years Money is Invested: 3 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Ic = Ir/((1+Ir)^T-1) --> 10/((1+10)^3-1)
Evaluating ... ...
Ic = 0.0075187969924812
STEP 3: Convert Result to Output's Unit
0.0075187969924812 --> No Conversion Required
FINAL ANSWER
0.0075187969924812 0.007519 <-- Coefficient of Sinking Fund
(Calculation completed in 00.004 seconds)

Credits

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17 Valuation Engineering Calculators

Annual Installment for Sinking Fund
Go Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Coefficient of Annual Sinking Fund
Go Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Annual Sinking Fund using Sinking Fund Method
Go Annual Sinking Fund = Rate of Interest/((1+Rate of Interest)^Life of Asset in Years-1)
Percentage Rate of Annual Depreciation
Go Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)
Years Purchase when Sinking Fund is Recovered
Go Years Purchase = 1/(Rate of Interest on Capital+Rate of Sinking Fund)
Rate of Sinking Fund given YP
Go Rate of Sinking Fund = (1/Years Purchase)-Rate of Interest on Capital
Coefficient of Annual Sinking Fund given Sinking Fund
Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund
Annual Installment given Sinking Fund
Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund
Sinking Fund for Buildings
Go Sinking Fund = Annual Installment/Coefficient of Sinking Fund
Capitalized Value using Profit Based Valuation
Go Capitalized Value = Net Rental Income*Years Purchase
Capitalized Value
Go Capitalized Value = Net Rental Income*Years Purchase
Gross Rent given Net Rent in Rental Method
Go Gross Rent = Net Rental Income+Outgoings of Repairs
Net Rent using Rental Method of Valuation
Go Net Rental Income = Gross Rent-Outgoings of Repairs
Outgoings using Rental Method
Go Outgoings of Repairs = Gross Rent-Net Rental Income
Net Income using Profit Based Valuation
Go Net Income = Gross Income-Outgoings of Repairs
Rate of Interest given Years Purchase
Go Rate of Interest = 100/Years Purchase
Years Purchase
Go Years Purchase = 100/Rate of Interest

Coefficient of Annual Sinking Fund Formula

Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)
Ic = Ir/((1+Ir)^T-1)

What is an Annual Installment?

Annual Installments means a series of amounts to be paid annually over a predetermined period of years in substantially equal periodic payments, except to the extent any increase in the amount reflects reasonable earnings through the date the amount is paid.

How to Calculate Coefficient of Annual Sinking Fund?

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

How to calculate Coefficient of Annual Sinking Fund using this online calculator? To use this online calculator for Coefficient of Annual Sinking Fund, enter Rate of Interest (Ir) & Number of Years Money is Invested (T) and hit the calculate button. Here is how the Coefficient of Annual Sinking Fund calculation can be explained with given input values -> 0.007519 = 10/((1+10)^3-1).

FAQ

What is Coefficient of Annual 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 and is represented as Ic = Ir/((1+Ir)^T-1) or Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). The Rate of Interest is the percent of principal amount charged for the due period & The Number of Years Money is Invested is the total number of years for which the money is invested.
How to calculate Coefficient of Annual 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 is calculated using Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1). To calculate Coefficient of Annual Sinking Fund, you need Rate of Interest (Ir) & Number of Years Money is Invested (T). With our tool, you need to enter the respective value for Rate of Interest & Number of Years Money is Invested and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Coefficient of Sinking Fund?
In this formula, Coefficient of Sinking Fund uses Rate of Interest & Number of Years Money is Invested. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Coefficient of Sinking Fund = Annual Installment/Sinking Fund
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