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.’
‘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.’
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