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Hi Sir,
In part (i) of the question i dont understand the workings of how they arrived at the keu=10.93%.
In particular, how did they go from;
16.83%=keu+0.75(keu-4.76%)*1785/1400 to getting the answer of keu=10.93%.Im really bad at mathematics.
Please help
first, safer to use decimals than %’s, so….
0.1683 = keu + 0.75(keu – 0.0476)* 1785/1400
Multiply everything by 1400, so….
0.1683 x 1400 = 1400 keu + 1785×0.75(keu – 0.0476)
235.62 = 1400keu + 1338.75(keu – 0.0476)
Multiply everything in the bracket by 1338.75, so…..
235.62 = 1400 keu + 1338.75keu – 63.7245
So….
299.345 = 2738.75 keu
so keu = 299.345/2738.75 = 0.1093 (or 10.93%)
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