Question

Calculate the value of years purchase for a property if its life is 20 years and rate of interest is 5%. For sinking fund rate of interest is 4.5%

Answer 1

Answer:

12.21

Step-by-step explanation:

here, R=5%              i=4.5%

Y.P= 1/(i+Sf)

Coeff. of sinking fund (Sf) =i/((1+i)^n-1)

=0.0319

Y.P. = 1/0.05 + 0.0319

=12.21

hope it helps you. thanks