![]() This is the factor by which you multiply your money to accumulate to get the result - your contribution to the sinking fund!Ĭontribution = Money to accumulate * (interest / ((interest + 1) ^ (compound frequency * period) - 1)) You are ready to use this sinking fund calculator! In its advanced mode you may find the USSF - Uniform Series Sinking Fund factor.Rate compound frequency - how often the interest will be paid and.You needn't worry though, the sinking fund calculator will do that for you, just put your annual interest rate into the tool For example, if your annual interest rate is 6% and interests are compounded monthly, you should use 6%/12 = 0.5%. The annual interest rate that matches your compounding frequency.It may be the entire principal value of the bond, or just a part of it Money to accumulate - the amount that you want to collect at the end of the period. ![]() For bond sinking funds, it may be the time from today to your bond's maturity
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