Discussions - Of Mr. Dilworth’s Paper on A Method of Calculating Sinking-Funds, and a Table of Values for Ordinary Periods and Rates of Interest (see p. 533)
- Organization:
- The American Institute of Mining, Metallurgical, and Petroleum Engineers
- Pages:
- 2
- File Size:
- 77 KB
- Publication Date:
- Jan 1, 1911
Abstract
Frank Firmstone, Easton, Pa. (communication to tlie Secretary*) :—Mr. Dilworth's formulas hnd tables are of course correct, and the extillction will occur as calculated, provided the nioney periodically set aside for sinking-fund be really invested and the interest compounded as assumed in the calculation. Actually, in alrilost all cases, such funds are used " in the business," in which case, in addition to the periodical charges for principal of the fund, additional charges must he made at the end of each period to cover the interest and compound interest on previous charges. The periodical charge for sinking-fund thus becomes a varyillg and continually increasing one until the date of extinction. On many accounts it scems more natural and conveniellt to make the extinction by a fixed periodical charge under the legal rule for partial payments,
Citation
APA: (1911) Discussions - Of Mr. Dilworth’s Paper on A Method of Calculating Sinking-Funds, and a Table of Values for Ordinary Periods and Rates of Interest (see p. 533)
MLA: Discussions - Of Mr. Dilworth’s Paper on A Method of Calculating Sinking-Funds, and a Table of Values for Ordinary Periods and Rates of Interest (see p. 533). The American Institute of Mining, Metallurgical, and Petroleum Engineers, 1911.