Years Purchase Solution

STEP 0: Pre-Calculation Summary
Formula Used
Years Purchase = 100/Rate of Interest
Y = 100/Ir
This formula uses 2 Variables
Variables Used
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.
Rate of Interest - The Rate of Interest is the percent of principal amount charged for the due period.
STEP 1: Convert Input(s) to Base Unit
Rate of Interest: 10 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Y = 100/Ir --> 100/10
Evaluating ... ...
Y = 10
STEP 3: Convert Result to Output's Unit
10 --> No Conversion Required
FINAL ANSWER
10 <-- Years Purchase
(Calculation completed in 00.004 seconds)

Credits

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Created by Chandana P Dev
NSS College of Engineering (NSSCE), Palakkad
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Coorg Institute of Technology (CIT), Coorg
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Years Purchase Formula

​LaTeX ​Go
Years Purchase = 100/Rate of Interest
Y = 100/Ir

What does YP mean in Valuation?

Years Purchase (YP), single rate or the Present Value (PV) of £1 per annum receivable at the end of each year after accounting for a sinking fund to accumulate at the same rate of interest as that which is required on the invested capital and ignoring the effect of income tax on that part of the income used to provide.

How to Calculate Years Purchase?

Years Purchase calculator uses Years Purchase = 100/Rate of Interest to calculate the Years Purchase, The Years Purchase formula is defined as the capital sum required to be invested to receive a net annual income of rs/- 1 at a certain interest rate. Years Purchase is denoted by Y symbol.

How to calculate Years Purchase using this online calculator? To use this online calculator for Years Purchase, enter Rate of Interest (Ir) and hit the calculate button. Here is how the Years Purchase calculation can be explained with given input values -> 10 = 100/10.

FAQ

What is Years Purchase?
The Years Purchase formula is defined as the capital sum required to be invested to receive a net annual income of rs/- 1 at a certain interest rate and is represented as Y = 100/Ir or Years Purchase = 100/Rate of Interest. The Rate of Interest is the percent of principal amount charged for the due period.
How to calculate Years Purchase?
The Years Purchase formula is defined as the capital sum required to be invested to receive a net annual income of rs/- 1 at a certain interest rate is calculated using Years Purchase = 100/Rate of Interest. To calculate Years Purchase, you need Rate of Interest (Ir). With our tool, you need to enter the respective value for Rate of Interest and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Years Purchase?
In this formula, Years Purchase uses Rate of Interest. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Years Purchase = 1/(Rate of Interest on Capital+Rate of Sinking Fund)
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