Sinking fund coefficient, the reciprocal of ordinary annuity's final value coefficient is sinking fund coefficient. In other words, the coefficient of sinking fund and the final value coefficient of annuity are reciprocal. The coefficient of sinking fund can be made into a table for future reference, or it can be determined according to the reciprocal of the final value coefficient of annuity.
Formula: final value coefficient of annuity × coefficient of sinking fund = 1.
Extended data:
Only when the bond is repaid in installments will it be established. Generally speaking, debt repayment funds are drawn from the surplus of the issuing company in a certain proportion every year, or from a fixed amount or the proportion of bonds issued every year.
Receive or pay the same amount of money at equal intervals. If you receive a pension 10000 yuan at the end of each year, it is an annuity. The present value of annuity refers to the sum of the present value of annuity interest received during the occurrence period according to a certain market interest rate.