Compound interest method of estimating depreciation is otherwise called as

Correct option is B

The compound interest method assumes that depreciation funds are accumulated gradually with compound interest over the life of the asset. A fixed amount is deposited periodically so that the accumulated fund equals the replacement value at the end of asset life. This approach is commonly referred to as the sinking fund method in farm management economics. Hence, sinking fund method is the correct answer.
Information booster: Depreciation represents the gradual loss in value of capital assets due to wear and tear. Sinking fund method is suitable for high-cost machinery and equipment. It ensures availability of replacement funds at the right time. Depreciation calculation is important for accurate cost estimation.
Why other options are incorrect: (a) Annual revaluation method does not involve compound interest accumulation. (c) Insurance policy method is unrelated to depreciation estimation. (d) Straight line method distributes depreciation evenly without interest.