An old building has been purchased by a person at cost of Rs. 30,000/- excluding the cost of land. What is the amount of annual sinking fund at 4 % interest assuming the future life of building as 20 years and scrap value of building as 10 % of cost of purchase?

An old building has been purchased by a person at cost of Rs. 30,000/-

1.	An old building has been purchased by a person at cost of Rs. 30,000/- excluding the cost of land. What is the amount of annual sinking fund at 4 % interest assuming the future life of building as 20 years and scrap value of building as 10 % of cost of purchase?
A.	Rs. 400.20
B.	Rs. 200.70
C.	Rs. 906.70
D.	Rs. 890.70
Answer» D. Rs. 890.70

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An old building has been purchased by a person at cost of Rs. 30,000/- excluding the cost of land. What is the amount of annual sinking fund at 4 % interest assuming the future life of building as 20 years and scrap value of building as 10 % of cost of purchase?

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