An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the________?
Correct answer
D. Depreciation by sinking fund method
Explanation
The correct answer is Depreciation by sinking fund method.