Real Estate Math Chapter 17

The area of a rectangle is calculated by multiplying its length and width: Area = Length × Width (A = L × W).

The area of a triangle is calculated by multiplying its base, height, and one-half: Area = ½ × Base × Height (A = ½ × B × H).

The percentage of a whole can be calculated by multiplying the percentage value (expressed as a decimal) by the whole number: Part = Percentage × Whole (P = % × W).

A commission is a fee paid to an agent (e.g., a realtor) for services rendered, often calculated as a percentage of the sale price.

The annual interest rate is the percentage charged on a loan over the course of a year, expressed as a decimal. It's a crucial factor in determining monthly payments.

The process of isolating a specific variable or unknown value in an equation or problem. This involves manipulating known values to express the unknown variable alone on one side of the equation.

A method used to solve math problems involving multiple steps. It involves writing down the formula, substituting known values, and then performing calculations to arrive at the solution.

A way to represent fractions as decimal numbers. Converting fractions to decimals allows for easier calculations on calculators.

The percentage of a whole value, expressed as a decimal. It is used in various calculations, such as calculating appreciation or commission.

The increase in the value of an asset over time. It is often expressed as a percentage of the original purchase price.

The portion of the monthly loan payment that directly reduces the outstanding loan balance.

The amount of interest charged on a loan for a specific period, typically a month.

The combined payment of principal and interest that borrowers make each month on a loan.

The process of gradually paying off a loan over time through regular payments that include both principal and interest.

The initial amount borrowed in a loan.

This formula helps to calculate the value of a property at a later point in time (Now) based on its value at an earlier point (Then) and the percentage change.

This formula is used to calculate the original value of a property (Then) if you know the current value (Now) and the percentage of loss.

This formula is used to calculate the percentage of loss when you know the original value (Then) and the current value (Now).

This formula is used to find the percentage of the original value that remains after a loss. The result is the 'Percentage Received' used in other formulas.

In real estate math problems with loss, you need to use the "Percentage Received" (the amount of the original value remaining) in the formula, not the percentage of loss.

The total annual property tax paid on a property is determined by multiplying the number of $100 increments in the assessed valuation by the tax rate per $100.

The 'seller's net' is the amount of money the seller wants to receive after paying all expenses, including commission and settlement costs.

A seller's net problem involves calculating the selling price required to achieve a desired net profit after accounting for commissions and other costs.

Before calculating the selling price, determine the seller's desired net profit by adding any desired profit to the original purchase price. Then add any other costs to get the total amount needed.

If one wants to receive a certain amount of money after commission, the selling price needs to be adjusted to account for the agent's commission. Subtract the commission rate from 100% to find the percentage of what the seller actually needs to sell the property for.