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John is a Minnesotan arable farmer with 6 0 hectares of land. His main crop is consumption potatoes. His total assets are worth $ 3

John is a Minnesotan arable farmer with 60 hectares of land. His main crop is consumption potatoes. His total assets are worth $3,600.000, and he has a loan outstanding of $750,000 over which he pays 6% interest. Their return to assets for this year was $150,000 and he had to pay $21,000 in taxes. Their family consumption rate is 30%.
Assets =$3,600,000
Liabilities =$750,000
Equity =$3,600,000-$750,000=$2,850,000
Interest Rate =6%
Interest (6% of liabilities)=$45,000
Return to assets (percentage of Assets)=$150,000
Taxes (percentage of taxable income)=$21,000
Consumption Rate =30%
Determine the growth of equity for johns farm

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