How much will be the amount of sinking fund payment

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Question - XYZ limited is creating a sinking fund to redeem its preference capital of Rs. 5 lakh issued on 6 April 2004 and maturing on 5 April 2015. The first annual payment will be made on 6 April 2004. The company will make equal annual payments and expects that the fund will earn 12 percent per year. How much will be the amount of sinking fund payment?

Reference no: EM132927577

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