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