noun

• A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.

  ‘In each period a certain percentage of gross output is set aside into a sinking fund for depreciation and replacement; this percentage is based on the length of life of machines, which is assumed to be given and constant.’

  More example sentences

  • ‘The banks which finance the investors may well require that the promoters/operators put aside a fixed amount into a sinking fund over the period of ownership by the investors.’
  • ‘He also proposed a sinking fund, financed by post office revenues, that would be pledged to pay off the debt.’
  • ‘The sinking fund, where money for long-term expenditure goes, had run dry, so if there was a serious problem there would have been real trouble.’
  • ‘Just consider the likelihood of congressmen agreeing to set aside $400 billion a year in a sinking fund instead of spending it on programs, projects, and overseas adventures designed to get him, or her, re-elected.’