Years Purchase Calculator

✖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.ⓘ Years Purchase [Y]

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Formula

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Years Purchase

Formula

`"Y" = 100/"I"_{"r"}`

Example

`"10"=100/"10"`

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Years Purchase Solution

STEP 0: Pre-Calculation Summary

Formula Used

Years Purchase = 100/Rate of Interest
Y = 100/I_r
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/I_r --> 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)

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Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

Mithila Muthamma PA has verified this Calculator and 700+ more calculators!

< 17 Valuation Engineering Calculators

Annual Installment for Sinking Fund

Go Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Coefficient of Annual Sinking Fund

Go Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Annual Sinking Fund using Sinking Fund Method

Go Annual Sinking Fund = Rate of Interest/((1+Rate of Interest)^Life of Asset in Years-1)

Percentage Rate of Annual Depreciation

Go Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)

Years Purchase when Sinking Fund is Recovered

Go Years Purchase = 1/(Rate of Interest on Capital+Rate of Sinking Fund)

Rate of Sinking Fund given YP

Go Rate of Sinking Fund = (1/Years Purchase)-Rate of Interest on Capital

Coefficient of Annual Sinking Fund given Sinking Fund

Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund

Annual Installment given Sinking Fund

Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund

Sinking Fund for Buildings

Go Sinking Fund = Annual Installment/Coefficient of Sinking Fund

Capitalized Value using Profit Based Valuation

Go Capitalized Value = Net Rental Income*Years Purchase

Capitalized Value

Go Capitalized Value = Net Rental Income*Years Purchase

Gross Rent given Net Rent in Rental Method

Go Gross Rent = Net Rental Income+Outgoings of Repairs

Net Rent using Rental Method of Valuation

Go Net Rental Income = Gross Rent-Outgoings of Repairs

Outgoings using Rental Method

Go Outgoings of Repairs = Gross Rent-Net Rental Income

Net Income using Profit Based Valuation

Go Net Income = Gross Income-Outgoings of Repairs

Rate of Interest given Years Purchase

Go Rate of Interest = 100/Years Purchase

Years Purchase

Go Years Purchase = 100/Rate of Interest

Years Purchase Formula

Years Purchase = 100/Rate of Interest
Y = 100/I_r

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 (I_r) 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/I_r 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 (I_r). 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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