00:01
Hi, in this question we have to calculate the annual earning.
00:06
So, annual earning is given by so annual net earning is given by it is annual earning minus annual expense.
00:16
So, we have annual earning is dollar 67000 minus dollar 3000.
00:21
So, annual net earning is equal to dollar 64000.
00:25
So, here we have so we have the rate of return on the machinery is given as p is equal to a of p by a.
00:36
So, a of p by a comma i comma n plus f of p by f comma i comma n minus g of p by g comma i comma n.
00:49
So, on substituting the value we have it is dollar 64000 into p by a comma i comma 10 plus dollar 20000 into p by f comma i comma 10 minus dollar 600 into p of g comma i comma 10.
01:10
So, here we have this is dollar 64000 into this value is 5 .019 plus dollar 27000 into value is 0 .2472 minus dollar 600 multiplied by 16 .97.
01:29
So, on calculating this we have p is equal to so the lowering factor rate is dollar 31972 .6.
01:39
So, now we have for a rate of interest of so rate of interest of 18 percent.
01:47
So, in previous case it was for 15 percent now we have 18 percent rate of interest...