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A machine costs a company Rs 65,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the

A machine costs a company Rs 65,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the machine at the end of its life time, when its scrap realise a sum of Rs 2,500 only. Calculate what amount should be provided every year from the profits earned for the sinking fund, if it accumulates 3.5% p.a. compounded annually. [Given that (1.035)25 = 2.351]

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