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Years Purchase Formula

GoYears Purchase when Sinking Fund is Recovered Formula

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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. Check FAQs

Y = \frac{100}{I r}

Y - Years Purchase?I_r - Rate of Interest?

Years Purchase Example

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With units

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Here is how the Years Purchase equation looks like with Values.

Here is how the Years Purchase equation looks like with Units.

Here is how the Years Purchase equation looks like.

10 = \frac{100}{10}

10 = \frac{100}{10}

10 = \frac{100}{10}

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Years Purchase Solution

Follow our step by step solution on how to calculate Years Purchase?

FIRST Step Consider the formula

Y = \frac{100}{I r}

Next Step Substitute values of Variables

∴

Y = \frac{100}{10}

Next Step Prepare to Evaluate

∴

Y = \frac{100}{10}

LAST Step Evaluate

∴

Y = 10

Years Purchase Formula Elements

Variables

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

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

Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Formula and 500+ more formulas!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

Mithila Muthamma PA has verified this Formula and 700+ more formulas!

Other Formulas to find Years Purchase

Go Years Purchase when Sinking Fund is Recovered

Y = \frac{1}{I p + I s}

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 Years Purchase?

Years Purchase evaluator uses Years Purchase = 100/Rate of Interest to evaluate 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 evaluate Years Purchase using this online evaluator? To use this online evaluator for Years Purchase, enter Rate of Interest (I_r) and hit the calculate button.

FAQs on Years Purchase

What is the formula to find Years Purchase?

The formula of Years Purchase is expressed as Years Purchase = 100/Rate of Interest. Here is an example- 10 = 100/10.

How to calculate Years Purchase?

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

What are the other ways to Calculate Years Purchase?

Here are the different ways to Calculate Years Purchase-

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

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