Question

Which expense would be a reason to set up a sinking fund?

Answer 1

There are a number of different reasons and ways to use your sinking funds. If you have a planned expense, (such as a vacation), or an annual expense, (like preschool tuition), you can set up a sinking fund for it. Things like your vacation, home remodeling, and taxes could all have sinking funds.

Answer 2

annual license plate renewal

Step-by-step explanation:

which expense would be a reason to set up a sinking fund?

Annual license plate renewal

Damaged phone

Dental emergency

Unplanned car repair