A machine costs ₹ 1,00,000 and its effective life is estimated to be 12 years. A sinking fund is created for replacing the machine by a new model at…

A machine costs ₹ $\displaystyle 1,00,000$ and its effective life is estimated to be $\displaystyle 12$ years. A sinking fund is created for replacing the machine by a new model at the end of its life time when its scrap realizes a sum of ₹ $\displaystyle 5,000$ only. Find what amount should be set aside at the end of each year, out of the profits for the sinking fund if it accumulates at $\displaystyle 5$% effective. [Use $\displaystyle (1.05)^{12}=1.7958$]