Enter the change in RPI (%) and the original ground rent ($) into the calculator to determine the RPI New Ground Rent.
RPI New Ground Rent Formula
The following formula is used to calculate the RPI New Ground Rent.
NGR = RPI / 100 * OGR + OGR
- Where NGR is the RPI New Ground Rent ($)
- RPI is the change in RPI (%)
- OGR is the original ground rent ($)
How to Calculate RPI New Ground Rent?
The following example problems outline how to calculate RPI New Ground Rent.
Example Problem #1:
- First, determine the change in RPI (%). In this example, the change in RPI (%) is given as 10.
- Next, determine the original ground rent ($). For this problem, the original ground rent ($) is given as 1000.
- Finally, calculate the RPI New Ground Rent using the equation above:
NGR = RPI / 100 * OGR + OGR
The values given above are inserted into the equation below:
NGR = 10 / 100 * 1000 + 1000 = 1100($)
Example Problem #2:
The variables needed for this problem are provided below:
change in RPI (%) = 15
original ground rent ($) = 1500
Entering these values and solving gives:
NGR = 15 / 100 * 1500 + 1500 = 1725($)
