 # Calculating a yield % - Posted by BAK

Posted by DAVE (MI.) on March 17, 1999 at 18:50:05:

I HOPE THIS HELPS
A !00,000 NOTE WITH 11% INT.ONLY PAYMENTS OF 916.67 PER MO. SOLD FOR 80,000 WOULD YEILD ;

\$916.67 X 60 MONTHS = \$55,000 ADD TO THIS THE DICOUNT= \$20,000
TOTAL= \$75,000
divide this by how many years the invesment was tied up–\$75,000 div. by 5 yrs.= \$15,000
divide this by the amount invested :
\$15,000 div.by \$80,000 =18.75 % yeild

Calculating a yield % - Posted by BAK

Posted by BAK on March 17, 1999 at 10:27:55:

I can define a yield as the return on an investment. As a dollar figure I can calculate a return as follows:

\$100,000 investment
X 15% interest rate

\$ 15,000 return on investment

However, the amount of time it takes to earn this return, together with whether the interest rate is simple or compound, I assume, determine how a yield is expressed in a percentage.

Could someone assist me by explaining (by example) how to calculate a yield in percentages? Thanks