The magical T formula
? PART ?
------------------
TOTAL | RATE
??
[1]
Rule 1
When you have the TOTAl and the RATE, you always MULTIPLY,to get your PART,
Rule 2,
When you have the PART and the RATE,DIVID to get the TOTAL,
Rule 3
When you have the PART and the TOTAL , DIVIDE to get the RATE,
Rule 4,
The PART goes in your calc
Commission
-----------------
Sold for $ 85,400,
and was paid a 7%
commission,
What was the commission ?
[2]
(5,978)
-----------
= 5,978
__________
85,400| 7 %
x
Commission
------------------
Jayne sold a property for $ 150,000. She was paid 7% on the first $ 50,000 and 5% on everything over that amount. How much was she paid ?
[3]
8,500
Commission
------------------
A commission check was $ 3,280.
Carrie received 7% of the first $ 30,000, and 5% on the remaining balance , what was the sale price?
[4]
53,600
Commission
------------------
Harry was paid 6% on the first $ 40,000, 5% on the next $ 30,000,and 4% on the remaining balance, the total commission paid was $ 5,900.
What was the sale price of the property?
[5]
$ 120,000
Commission
------------------
Harry sold his house for $ 100,000, and paid commission $6,000, what was the commission rate?
[6]
6%
Seller's Dollars
------------------
Harry was paid 7% commission on a sale, and the seller received a check for $ 93,000, what was the sale price?
[7]
100,000
The Formula,
:- seller's $ -:
--------------------
Sale price|seller%
X
Seller's $ :- seller's % = sale price,
Seller's $ :- sale price = seller's %
Sale price x seller's % = sellers $
Seller's Dollars,
------------------
The owners want to make a 12% profit on the sale of their house after payment of a 7% brokers fee, their original cost was $82,000, what is the minimum offer they can accept on their property?
[8]
98,752,69
Finance Math
------------------
Harry offers $ 89,000, at a 80% loan to value,what was the loan amount ?
[9]
71,200
Formula
-------------
Annual interest
____________
Loan |Interest Rate
Loan x Interest Rate = Annual Interest $.
Annual Interest $ :- loan = Interest Rate,
Annual Interest $ :- Interest Rate = Loan,
Finance Math
------------------
Harry makes $ 3,600 yearly interest payments on a $45,000 loan, what is the interest rate ?,
[10]
8%
Finance Math
-------------------
Harry makes $3,600 yearly payments at 8%, what was the amount of the loan?,
[11]
$ 45,000
Finance Math
------------------
Harry pays $4,920 yearly interest on a loan, the loan is for 80% of the value, and the interest rate is 10.5%, what is the value of the property ?,
[12]
$58,571,43
Loan amount, $46,857,14
Value amount,$58,571,43
Finance Math
------------------
Harry negotiated a 90% loan on a property that appraised for $105,000,the yearly interest payment is $7,560.
What is the interest rate?,
[13]
8%
Loan Amount $94,500
Interest Rate 8%
Property taxes
-------------------
The property is valued at $65,000,it is assed for 60% of its value,what is the tax if the rate is $5.30 per $100?
[14]
$2,067
The tax rate of $5.30 per $100 means that you touch 5.30 into your calculator and divide by 100. The tax rate is equal to .053,
If the tax rate had been $5.30 per $1000, than you would take 5.30 and divide by 1000 to get .0053 for the tax rate,
If
Property taxes
-------------------
What is the monthly property tax if the appraised value is $95,000,the assessment rate is 45%, and the tax rate is 55 mills ?
[15]
$195.94
Assessed value x tax Rate = Annual Property Taxes.
Annual Property Taxes :- Assessed Value = Tax Rate
Annual Property Taxes :- Tax Rate = Assessed Value,
Income Approach Appraising
------------------
The rental income is $34,200,there is a 5% vacancy rate, expenses are $600 per month,and the investor wants an 8% return. How much will he pay for the property?
[16]
$316,125
Income Approach to Appraising
-----------------
A buyer wants a 12% return on his investment, the gross income is $95,000 and monthly expenses are $2,300, how much should he pay for the property ?
[17]
$561,666.67
Income Approach to Appraising
-----------------
The gross income of a property is $149,450 and quarterly expenses are $9,000. If the owner wants a 10% return, how much should he pay for the property?
[18]
$1,134,500
Income Approach to Appraising
-----------------
A $375,000 sale price was obtained from. 10% capitalization rate. What was the amount of gross income when the total expenses were 15% of the gross?.
[19]
$44,117.65
1) 37,500
----------
375,000|10%
2) 37,500
------------
44,117.65|85%
Income Approach to Appraising
-----------------
A $475,000 sale price was obtain from an 8% capitalization rate. What was the gross income when the total expenses were 14% of the gross?
[20]
$44,186.05
Cost Approach
-------------------
The replacement cost of a property is $225,000; the land is valued at $50,000 and the depreciation is 15%. What is the value of the property ?
[21]
$241,250
Cost Approach
-------------------
The replacement cost of a building is $120,000, and has depreciated at a rate of 15%. The land is valued at $21,000. What is the value of the property ?
[22]
$123,000
Appreciation Formula
-----------------
A house that originally cost $50,000 appreciated 5%. What is the value of the property?
[23]
$52,500
?
------------------
50,000|105%
1) original Investment x Appreciated % = Appreciated Value
2) Appreciated Value :- Original Investment = Appreciated %
3) Appreciated Value :- Appreciated % = Original Investment.
Appreciation Formula
-----------------
The appreciated value of a property is $125,000. It appreciated 8%. How much was originally paid for the property ?
[24]
$115,740.74
125,000
--------------
? |108%
Appreciation Formula
-----------------
Harry sold his property for $330,000. If he made a profit of 10%. What was his original cost ?
[25]
$300,000
330,000
----------------
? | 110%
Depreciation Formula
------------------
A house which originally cost $50,000 depreciated 5%. What is the value of the property today?
[26]
$ 47,500
Depreciation Formula
------------------
Harry paid $65,000 for. House, it depreciated 4% each year over the previous year's value, what was the house worth at the end of 2 years ?
[27]
$59,904
Year 1
----------
$62,400 =
---------------
65,000|96%
----------------------
Year 2
---------
$59,904 =
----------------
62,400|96%
Percent of Profit Formula
-----------------
A house that listed for $54,000 sold at 10% les than the list price. The buyer then sold it for the list price. What was the percent of profit ?
[28]
11.11%
----------
54,000 list price
- 10%
------------
48,000
54,000
- 48,000
------------
5,400 profit
5,400
----------------
48,600|11.11 =
-------------------
What you made
--------------------
You paid| % of profit
Percent of Profit Formula
-----------------
Listed for $105,000. You bought it for 7/8's
of the list price. You sold it for the list price. What was your percentage of profit ?
[29]
14.29%
----------------
7/8
-----
7 -: 8 = 87.5%
Percent of Loss Formula
-----------------
Harry purchased a property for $65,000 and sold it for $60,000. What was the percent of loss ?
[30]
7.69%
--------------
1) 65,000
- 60,000
-------------
5,000
2) 5,000
-------------
65,000|7.69% =
--------------------
What You Loss
-----------------
You Paid| % loss
Percent of Loss Formula
----------------
Harry purchased a property for $90,000. Then sold it for $82,000. What was the percent of loss on the property.
[31]
8.89%