Answer:
The interest rate will be "11.147%".
Explanation:
The given values are:
Cost of machine,
= $8500
Depreciation rate,
= 6.5%
Increase in income,
= $1500
Now,
⇒ [tex]Increase \ in \ income=Cost \ of \ machine\times \frac{R}{100}+ Cost \ of \ machine\times \frac{Depreciation \ rate}{100}[/tex]
On substituting the values, we get
⇒ [tex]1500=8500\times \frac{R}{100}+8500\times \frac{6.5}{100}[/tex]
⇒ [tex]1500=85R+552.5[/tex]
On subtracting "552.5" from both sides, we get
⇒ [tex]1500-552.5=85R+552.5-552.5[/tex]
⇒ [tex]947.5=85R[/tex]
⇒ [tex]R=\frac{947.5}{85}[/tex]
⇒ [tex]R=11.147[/tex]%
