What would be the interest/hr of a three-bottom plough purchased by a farmer having 30 cm bottom width at ₨ 12000/- only? (Ploughing speed is 5 km per hour. Interest rate @ 10% of capital cost/year and salvage value @ 10% capital cost per year.)
a) Rs 2.20/hr
b) Rs 2.40/hr
c) Rs 3.02/hr
d) Rs 1.50/hr
Answer: a
Explanation: Interest/hr = \(\frac{[12000+12000*\frac{10}{100}]}{[2*300]} * \frac{10}{100} = \frac{13200}{2} * \frac{10}{100*300}\) = Rs 2.20/hr.
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