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how to get percentage rate formula. As you can see from this example both properties have very similar cap rates and Property B is significantly less expensive than Property A. The screenshot below demonstrates the results returned by the formula the Percentages of Total column is formatted as percentage with 2 decimal places showing.
To get a better understanding of this formula lets consider the following example. Parts of the total are in multiple rows. Calculate the annual growth rate.
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0066 x 100 66 cap rate Property B. Discount Rate Formula Example 2. Discount Rate 3000 2200 15 1 Discount Rate 640 Therefore in this case the discount rate used for present value computation is 640. Repeat steps 1 2 for the other number.