Financial Calculators
Sinking Fund Calculator
The sinking fund calculator helps you to determine how much you need to put aside in order for you to achieve your goal within the specified time.
Sinking Fund Calculator
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Rate compounding frequency
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Table of contents
| ◦What is a Sinking Fund? |
| ◦Sinking fund formula |
What is a Sinking Fund?
A sinking funds is a fund where a company can put the money from now on in order to make it easier to repay their debts. Most companies use a debt sinking fund to manage their debt.
If you have a bond sinking fund, it may help to reduce the final amount that you pay. By making regular payments, and letting the interest do the rest, the company will pay less at maturity.
Sinking fund formula
Based on the sinking fund definition in the previous section, it may be viewed as finding a value of a regular series of payments that will give enough interest to finally achieve your goal.
To fulfill this sinking fund definition find your contribution you will need:
Contribution = Money to accumulate * (interest / ((interest + 1)^compound frequency * period
- 1))
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Parmis Kazemi
Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.
Sinking Fund Calculator English
Published: Tue Jun 14 2022
In category Financial calculators
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