A machine purchased at a cost of Rs.10,000 has a useful life of two years. The amount which is to be set aside annually as sinking fund at the rate of 10% compound interest will be

1
Rs. 1000/ 0.10
2
Rs. 1000/ 0.31
3
Rs. 1000/ 0.21
4
Rs. 1000/ 1.10

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