Hello Lovebird,

I'll start by explaining the mathematical part to you.

16 and 2/3 expressed as an improper fraction is equivalent to 50/3 which again is equivalent to 100/6.As you can see 100/6 is the reciprocal of 6/100,i.e. 6%.

That's why, if your annual income represents 6% of your capital value,you have to DIVIDE the annual income by 6% to calculate the capital value.

Annual Income=6% Capital Value

Capital Value= Annual Income division 6%

= Annual Income divided by 6/100

= Annual Income multiplicated by 100/6

= A.I. x 16 and 2/3

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