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Velocity of Money Calculator

Formulas

The formulas used in the calculations are:

$T = N \times P$

$V_t = \frac{T}{M}$

This calculator computes the velocity of money based on the input values of the price index, volume of transactions, and money in circulation.

Let's assume the following:

Calculate the sum of all transactions:

$T = 15 \times 6 = 90$

Calculate the velocity of money:

$V_t = \frac{90}{30} = 3 \, \text{per year}$