Nicholas Barbon (1690, A Discourse of Trade)
Another use of Interest, is, It is the measure of the Value of the Rent of Land; it sets the Price in Buying and Selling of Land: For, by adding three Years Interest more than is in the Principle, Makes the usual Value of the Land of the Country; The difference of three Year is allowed; Because Land is more certain than Mony or Stock. Thus in Holland, where Mony is at three per. Cent. by reckoning how many times three is in a Hundred Pounds, which is Thirty Three; and Adding three Years more; makes Thirty Six Years Purchase; the Value of the Land in Holland: And by the same Rule, interest being at six per Cent. in England, Land is worth but Twenty Years Purchase; and in Ireland, but Thirteen; Interest being there at Ten per Cent: so that, according to the Rate of Interest, is that Value of the Land in the Country.
I do not quite understand what the above means.
In particular, what does for example "Thirty Six Years Purchase" mean? Does it mean that to buy a piece of land, one pays 36 times the (annual) rent?