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A Company has decided to set up a sinking fund to replace an asset after 5 years. The value of the fund after 5 years

A Company has decided to set up a sinking fund to replace an asset after 5 years. The value of the fund after 5 years must be Tk. 1,00,000 and the fund is expected to earn interest at the rate of 7% per annum.

i) What must be the annual payment into the fund if the payment make at the end of each year?

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