A sinking fund: requires at the beginning one lump sum payment is really not an annuity aids in meeting a future obligation does not compound its money none of these

A sinking fund "aids in meeting a future obligation".

A sinking fund is a sort of fund that is made and set intentionally to repaying debt. The proprietor of the account puts aside a specific sum frequently and utilizes it just for an explicit reason. Frequently, it is utilized by partnerships for bonds and stores cash to repurchase issued bonds or parts of bonds before the development date arrives. It is additionally one method for alluring financial specialists in light of the fact that the funds persuades them that the guarantor won't default on their installments.