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Rate of Interest given Years Purchase Formula

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The Rate of Interest is the percent of principal amount charged for the due period. Check FAQs

I r = \frac{100}{Y}

I_r - Rate of Interest?Y - Years Purchase?

Rate of Interest given Years Purchase Example

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Here is how the Rate of Interest given Years Purchase equation looks like with Values.

Here is how the Rate of Interest given Years Purchase equation looks like with Units.

Here is how the Rate of Interest given Years Purchase equation looks like.

9.0909 = \frac{100}{11}

9.0909 = \frac{100}{11}

9.0909 = \frac{100}{11}

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Rate of Interest given Years Purchase Solution

Follow our step by step solution on how to calculate Rate of Interest given Years Purchase?

FIRST Step Consider the formula

I r = \frac{100}{Y}

Next Step Substitute values of Variables

∴

I r = \frac{100}{11}

Next Step Prepare to Evaluate

∴

I r = \frac{100}{11}

Next Step Evaluate

∴

I r = 9.09090909090909

LAST Step Rounding Answer

∴

I r = 9.0909

Rate of Interest given Years Purchase Formula Elements

Variables

Rate of Interest

The Rate of Interest is the percent of principal amount charged for the due period.

Symbol: I_r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Interest

Years Purchase

Years Purchase in perpetuity is defined as the capital sum required to be invested in order to receive a net annual income of rs/- 1 at a certain rate of interest.

Symbol: Y

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Years Purchase

Other formulas in Valuation Engineering category

Go Sinking Fund for Buildings

S = \frac{I a}{I c}

Go Annual Installment given Sinking Fund

I a = I c \cdot S

Go Coefficient of Annual Sinking Fund

I c = \frac{I r}{{(1 + I r)}^{T} - 1}

Go Coefficient of Annual Sinking Fund given Sinking Fund

I c = \frac{I a}{S}

How to Evaluate Rate of Interest given Years Purchase?

Rate of Interest given Years Purchase evaluator uses Rate of Interest = 100/Years Purchase to evaluate the Rate of Interest, The Rate of Interest given Years Purchase formula is defined as the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. Rate of Interest is denoted by I_r symbol.

How to evaluate Rate of Interest given Years Purchase using this online evaluator? To use this online evaluator for Rate of Interest given Years Purchase, enter Years Purchase (Y) and hit the calculate button.

FAQs on Rate of Interest given Years Purchase

What is the formula to find Rate of Interest given Years Purchase?

The formula of Rate of Interest given Years Purchase is expressed as Rate of Interest = 100/Years Purchase. Here is an example- 9.090909 = 100/11.

How to calculate Rate of Interest given Years Purchase?

With Years Purchase (Y) we can find Rate of Interest given Years Purchase using the formula - Rate of Interest = 100/Years Purchase.

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