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The sinking fund factor is written

  • A.\( (F/A, i, n) \)
  • B.\( (A/P, i, n) \)
  • C.\( (P/F, i, n) \)
  • D.\( (A/F, i, n) \)

Answer: D

It gives the annual deposit needed to accumulate a stated future sum, which is how a replacement or sinking fund is sized in practice. Its reciprocal is the series compound amount factor, which works the calculation the other way.

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