A construction company invests 55000 in a new bulldozer If i

A construction company invests $55,000 in a new bulldozer. If income from temporary leasing of the bulldozer is expected to be $11,000 per year, when willit take to recover the investment at an interest rate of 15%..

Solution

Interest per Annum = 55000x0.15 = 8250

Investment l recovered per annum = 11000 - 8250 = 2750

No. Of years to recover full investment = 55000/2750 = 20 years!

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