FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Add on Rate Formula

Fx Copy

LaTeX Copy

Add on Rate refers to a method of calculating interest on a loan or investment where the interest is computed on the entire principal amount for the entire loan term, and then added to the principal. Check FAQs

AOR = ((\frac{YR}{d}) \cdot \frac{(APMI) - PV}{APMI})

AOR - Add on Rate?YR - Year?d - Days?APMI - Amount Paid at Maturity Including Interest?PV - Present Value of Money Market Instrument?

Add on Rate Example

With values

With units

Only example

Here is how the Add on Rate equation looks like with Values.

Here is how the Add on Rate equation looks like with Units.

Here is how the Add on Rate equation looks like.

0.3889 = ((\frac{7}{15}) \cdot \frac{(210) - 35}{210})

0.3889 = ((\frac{7}{15}) \cdot \frac{(210) - 35}{210})

0.3889 = ((\frac{7}{15}) \cdot \frac{(210) - 35}{210})

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Strategic Financial Management » fx Add on Rate

Add on Rate Solution

Follow our step by step solution on how to calculate Add on Rate?

FIRST Step Consider the formula

AOR = ((\frac{YR}{d}) \cdot \frac{(APMI) - PV}{APMI})

Next Step Substitute values of Variables

∴

AOR = ((\frac{7}{15}) \cdot \frac{(210) - 35}{210})

Next Step Prepare to Evaluate

∴

AOR = ((\frac{7}{15}) \cdot \frac{(210) - 35}{210})

Next Step Evaluate

∴

AOR = 0.388888888888889

LAST Step Rounding Answer

∴

AOR = 0.3889

Add on Rate Formula Elements

Variables

Add on Rate

Add on Rate refers to a method of calculating interest on a loan or investment where the interest is computed on the entire principal amount for the entire loan term, and then added to the principal.

Symbol: AOR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Add on Rate

Year

Year is 12 months used by companies and governments for accounting purposes and preparing financial statements.

Symbol: YR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Year

Days

Days refers to the number of days between settlement and maturity.

Symbol: d

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Days

Amount Paid at Maturity Including Interest

Amount Paid at Maturity Including Interest refers to the total sum that an investor receives when a financial instrument reaches its maturity date.

Symbol: APMI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Amount Paid at Maturity Including Interest

Present Value of Money Market Instrument

Present Value of Money Market Instrument refers to the current worth of a financial instrument that will pay a specified amount at maturity, discounted at a given interest rate.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value of Money Market Instrument

Other formulas in Strategic Financial Management category

Go Earnings Yield

EY = (\frac{EPS}{MPS}) \cdot 100

Go Earnings Yield using PE Ratio

EY = (\frac{1}{PE}) \cdot 100

Go Dividend Rate

DR = (\frac{DPS}{CP}) \cdot 100

Go Share Exchange Ratio

ER = \frac{OPTS}{ASP}

How to Evaluate Add on Rate?

Add on Rate evaluator uses Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest)) to evaluate the Add on Rate, Add on Rate calculates interest based on the initial principal for the full term of the loan or investment, rather than on the remaining balance as it reduces over time. Add on Rate is denoted by AOR symbol.

How to evaluate Add on Rate using this online evaluator? To use this online evaluator for Add on Rate, enter Year (YR), Days (d), Amount Paid at Maturity Including Interest (APMI) & Present Value of Money Market Instrument (PV) and hit the calculate button.

FAQs on Add on Rate

What is the formula to find Add on Rate?

The formula of Add on Rate is expressed as Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest)). Here is an example- 0.388889 = ((7/15)*((210)-35)/(210)).

How to calculate Add on Rate?

With Year (YR), Days (d), Amount Paid at Maturity Including Interest (APMI) & Present Value of Money Market Instrument (PV) we can find Add on Rate using the formula - Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest)).

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Add on Rate Formula

Add on Rate Example

Add on Rate Solution

Add on Rate Formula Elements

Other formulas in Strategic Financial Management category

How to Evaluate Add on Rate?

FAQs on Add on Rate

Variable Name