An old building has a future life of 15 years. The rate of interest on capital is 7%. If the coefficient of annual sinking fund is 0.43, then what will be the value of the year's purchase?

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RRB Paper · Accepted Answer

Year’s purchase is defined as the capital sum required to be invested in order to receive an annuity of Re 1.00 at a certain rate of interest. Year of purchase = 1/(SFF + i) Where, i = rate of interest = 7% = o.o7 SFF = Sinking fund coefficient = 0.43 Year of purchase = 1/(SFF + i) = 1/(0.43 + 0.07) = 2

An old building has a future life of 15 years. The rate of interest on capital is 7%. If the coefficient of annual sinking fund is 0.43, then what will be the value of the year's purchase?

2

36

3

4

The correct answer is `No. 1: 2`

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An old building has a future life of 15 years. The rate of interest on capital is 7%. If the coefficient of annual sinking fund is 0.43, then what will be the value of the year's purchase?

2

36

3

4

The correct answer is No. 1: 2

The correct answer is `No. 1: 2`