The maintenance cost of a building will be Rs.2 lacs after

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The maintenance cost of a building will be Rs.2 lacs after 10 years. The annual sinking fund required for such maintenance@ 6% interest per annum will be

1. Rs. l7,200/-
2. Rs. l5,200/-
3. Rs. l3,200/-
4. Rs.11,200/-

Correct Option: B

S = Annual Sinking Fund
S_n = Total sinking fund after 10 years

S =	S_n × R	=	200000 × 0.06	= Rs. 151714 /-
	(1 + R)ⁿ - 1		(1 + 0.06)¹⁰ - 1