Identify the correct relationship for annual sinking fund. Where,
l = Annual sinking fund,
S = Total amount of sinking fund invested on that
i = Rate of interest
n = number of years required to get 'S'
1
Sinking fund (I) = \(\frac{\mathrm{ni}}{(1+\mathrm{s})^{\mathrm{n}}-1}\)
2
Sinking fund (I) = \(\frac{\mathrm{Si}}{(1+\mathrm{i})^{\mathrm{n}}-1}\)
3
Sinking fund (I) = \(\frac{n i}{(1+n)^s-1}\)
4
Sinking fund (I) = \(\frac{S i}{(1+n)^i-1}\)