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The problem requires calculating the annual contribution required by an organization to accumulate ₹20,00,000 in 10 years using a sinking fund with an interest rate of 6%, compounded annually.

The formula for determining the annual contribution in a sinking fund is:

\[
A = \frac{S}{A(n, r)}
\]

Where:
- \( A \) is the annual contribution.
- \( S \) is the total amount to be accumulated (₹20,00,000).
- \( A(n, r) \) is the sinking fund factor, provided as 13.180785 for \( n = 10 \) years and \( r = 6\% \).

Now, substituting the values:

\[
A = \frac{20,00,000}{13.180785}
\]

Let's calculate that.The annual contribution required to accumulate ₹20,00,000 in 10 years, using a sinking fund with a 6% interest rate compounded annually, is approximately **₹1,51,736.03**.

This matches option (A) in the given choices.

Would you like more details or further clarification on any part of the calculation? Here are five related questions you might explore:

1. How does the sinking fund formula work for other compounding periods (e.g., monthly)?
2. How would the contribution change if the interest rate was different, say 8%?
3. What is the meaning of the sinking fund factor \(A(n, r)\)?
4. How would the formula adapt for continuous compounding?
5. How can this method be applied to personal savings goals?

**Tip:** Always make sure to double-check the interest compounding period, as different periods (monthly, quarterly) can change the result.

What is the annual contribution required by an organization to accumulate ₹20,00,000 in ten years for the construction of a new manufacturing plant, utilizing a sinking fund with an annual interest rate of 6% compounded annually?

Learn how to calculate the annual contribution required for a sinking fund to accumulate ₹20,00,000 over 10 years at 6% compounded interest. Understand the formula for the sinking fund factor and key financial mathematics concepts.

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