unit 6 notes part 2. math only
7.The interest rate on a loan is 6.5%, with quarterly interest payments of $1,462.50. What is the loan amount?
$1,462.50 x 4 = $5,850 annual interest; $5,850 ÷ .065 (6.5%) = $90,000
james paid $1,950 interest last year on a straight-term loan at 6.5% interest. What was the loan amount?
$1,950 ÷.065 (6.5%) = $30,000
Sales Associate receives 60% of the 7% commission on a property listed for $120,000 and sold for $110,000. How much is Sales Associate's commission?
$110,000 x .07 (7%) = $7,700 x .6 (60%) = $4,620
closing is on September 18. Buyer is assuming the existing mortgage with a balance at closing of $117,749and interest is 5%. Use 365-day year and Seller owns the day of closing. How does the interest proration appear on Buyer's and Seller's closing statements?
$117,749 x .05 (5%) = $5,887.45 annual interest ÷ 365 = $16.13 interest per day x 18 days owned bySeller = Debit seller / Credit buyer $290.34 jan - aug + sep 18
Sales price: $149,950How much is the deed tax and how does it appear on the closing statement?
$149,950 / 100 = 1499.5 = 1500 x $.7 = $1,050 Debit seller
What weekly salary is required for a buyer to qualify for a $156,000 loan?
$156,000 loan ÷ 2.5 income qualifying factor = $62,400 annual income ÷ 52 weeks = $1,200 /2.5 and /52
A property is sold for $53,125. The buyer is assuming a seller's mortgage of $27,775and obtaining a new mortgageloanof $14,680. What are the state taxes due on this transaction?
DEEDPurchase price ÷ 100 =$53,125 ÷ 100 = 531.25Take it up to the next whole number=532 stampsTax rate of $.70 ÷ $100=x .7 Documentary Stamp Tax on the Deed=$372.40
Taxes on a property are $1,186.25and have not been paid. Closing is set for May 15. The seller owns the day of closing. Calculate the proration and indicate how the entry appears on the closing statement.
Daysowned by seller Jan. = 31. Feb. = 28 march=31 apr=30 may=15 total=135 annual taxes =1,186.25 divide by days per year /365 = 3.25 taxes per day x days owned by seller 135 = debit seller/credit buyer 438.75 (seller owns the day of closing)
5A home sold for $89,850. The buyer paid $13,000 cash down, assumed a mortgage with a balance of $38,710 by signing a new note, and gave a second mortgage to the seller for the balance of $38,140. What is the total of all documentary stamp and intangibletax related to this transaction:
Deed: 89,850 / 100 = 898.5 up to 899 x $.7 = 629.30 tax on deed; Notes:38,710 assumed / 100 = 387.1 up to 388 x $.35 = $135.80 $38,140 new / 100 = 381.4 up to 382 x $.35 = $133.70 $135.80 +$133.70 = $269.50 total tax on new and assumed notes New mortgage: $38,140 x .002 = $76.28 intangible tax on new mortgage Total: $629.30 + $269.50 + $76.28 = $975.08
formula for Area of a Rectangle =
Depth x Width (square feet)
to convert a fraction to a decimal.... to convert decimal to percentage....
Divide the top number by bottom number move the decimal two places to the right
Tax on new note=$51.45w note ÷ 100=$14,680 ÷ 100 = 146.8Take it up to the next whole number=147 stampsTax rate of $.35 ÷ $100=x .35 Assumed note ÷ 100=$27,775 ÷ 100 = 277.75Take it up to the next whole number=278 stampsTax rate of $.35 ÷ $100=x .35 Tax on assumed note= + $97.30Documentary Stamp Tax on the Notes=$148.75 MORTGAGEAmount of new mortgage loan=$14,680Tax rate of __2_mills on new loan amount=x.002Intangible Tax on New Mortgage=$29.36
Documentary Stamp Tax on Deed=$372.40 Documentary Stamp Tax on Notes=$148.75 Intangible Tax on New Mortgages= + $ 29.36State Taxes due=$550.51
The street in front of your house is to be paved at a cost of $45 per running foot. The city has agreed to pay 25% of the paving cost and will assess the property owners for the remainder. If your lot frontage on the street is 90 feet, what is your portion of the special assessment?
Feet of frontage= 90Total cost per foot=x $45Totalcost of paving=$4,050 City paying 25%, owner paying 75%=x 75%Total owner's cost for 90 feet paving=$3,037.50Each owner only pays for ½ the street=÷ 2Your portion of the special assessment=$1,518.75 REMAINDER- key word paving always divide by 2
If a buyer purchased a property for $120,000 and obtained a loan of $96,000, what was the loan-to-value ratio?
Loan amount:=$96,000 Divided by value=÷$120,000 Equals loan to value ratio=.8 = .80 = 80% Loan ÷ Value = Loan-to-value ratio.
Closingis on June 17. Buyer is assuming the existing mortgage with a loan balance at closing of $86,687.50and interest is 8%.Use a 365-day year.Buyer owns the day of closing. How does the interest proration appear on Buyer's and Seller's closing statements.
Loan balance=$86,687.50x interest rate=x .08 (8%)Annual interest=$6,935÷ days per year=÷365Interest per day=$19# of days owned by seller=x16 Debit seller / Credit buyer=$304
A home was purchased with a down payment of $20,000 and a loan of $180,000 at 5.5 percent interest for 30 years. Monthly payments are $1,022.02. What is the loan to value ratio?
Loan: $180,000 Value: $20,000 +$180,000 = $200,000 LTV:= .9= 90%
1.A property is sold for $80,000 and the buyer receives a mortgage loan of $68,000. What is the loan-to-value ratio?
Loan: $68,000 ÷ Value: $80,000 = .85 = 85%
What weekly salary would be required to qualify for a $104,000loan?
Maximum loan=$104,000 Qualifying factor =÷ 2.5 Annual income=$41,600Weeks per year= x 52 Weekly salary=$800
formula for Net Buildable Area =
Net Buildable Depth x Net Buildable Width
6Calculate all applicable documentary stamp taxes and intangible taxes associated with financingthe transaction for a property located in Hendry County Purchase price $167,550 Earnest money $5,000 Recorded first mortgage (assumed) $127,880 Second mortgage (new) $14,770 Balance cash at closing $19,900
Notes: Assumed:$127,880 / 100 = 1278.8 up to 1,279 x $.35 = $447.65 New:$14,770 / 100 = 147.7 up to 148 x $.35 = $51.80 New Mortgage:$14,770 x .002= $29.54 Total$528.99
formula for total interest paid Borrower obtained a straight-term loan of $1,500 at 8 percent interest and paid it in full 1 year, 2 months and 6 days later. What was the total interest paid?
Principal x rate=Annual interest/ 360 days=Daily interest x # of days =Interest due $1,500principle x .08 (8%)rate =$120annual ÷ 360 days =$.33333333daily interest x 426 (360 + 60 + 6)# of days $142 due
formula for total payment due Borrower obtained a straight-term loan of $10,000 at 9 percent interest payable in full at the end of 3 months. Whatis the total payment due at the end of the term?
Principle x rate =annual interest / 360 = daily interest x # of days = interest due + principle = total payment due Principal=$10,000x rate =x .09 (9%)Annual interest=$900 annual interest ÷ 360 days=÷ 360Daily interest=$2.50x # of days= x90 (3 months x 30 days)Interest due=$225+ principal =+$10,000Total payment due=$10,225
Rentis paid in advance (at the beginning of the month).When items are paid in advance, Seller is debitedand Buyer is credited for the number of days owned by Buyer.A sale closes on June 23. Buyer owns the day of closing. The property is rented for $540 per month paid in advance on the first of the month. How does the rent show up on the closing statement
Rent in advance=$540÷ days in the month=÷ 30Rent per day=$18x days owned by buyer=x 8Debit seller / Credit buyer=$144 jan - june -22 seller
A buyer paid$10,000 for a property and later sold the property for $12,000. What was the percentage of profit?
Sales price$ 12,000 Amount paid-10,000 =$ 2,000MADE ÷ $10,000 Paid = .20 or 20%
A buyer paid $80,000 for a property and later sold the property for $100,000. What was the percentage of profit?
Sales price$100,000 Amount paid-80,000 Amount made$ 20,000 MADE$ 20,000 PAID÷ $ 80,000 Profit=.25 or 25%
A home sold for $89,000 with an 8% sales commission. It was listed by Broker Allen and sold by Sales Associate Carlton who works for Broker Briggs. Broker Allen pays Broker Briggs 45% of the total commission. Broker Briggs pays Sales Associate Carlton 60% of its commission. How much does Sales Associate Carltonearn?
Sales price$89,000 Commission rate x .08 Total commission$ 7,120 Selling company's % x .45 Selling company's commission$ 3,204 Selling sales associate's %. x .60 Selling sales associate's commission$ 1,922.40
Broker's commission is 4% of the first $500,000of sales priceand 3% of the balance. How much does broker earn if she makes a $600,000 sale?
Sales price=$600,000 First $500,000=$500,000 Commission rate on first $500,000 = x .04 Commission on first $500,000== $20,000 Balance of sales price=$100,000 Commission rate on balance=x .03 Commission on balance=+$3,000 Total Commission=$23,000
If a lender's loan-to-value ratio is 75%, what is the maximum mortgage amount on a sale of $92,000?
Sales price=$92,000 Loan-to-value ratio=x .75 Maximum loan amount=$69,000 mortgage = divide
Owner explained to Broker that they wanted to net $142,500 and that Broker could keep any amount over and above the net amount. If the customary and normal commission charged by Broker is 5%, what is the listing price?
Seller's requested net $142,500 ÷ Seller's net percentage 95% (.95) = $150,000
9.Sellerexplained to Broker that she wanted to net $202,400 and that Broker could keep any amount over and above the net amount. If the customary and normal commission charged by Broker is 8%, what is the listing price?
Seller's requested net $202,400 ÷ Seller's net percentage 92% (.92) = $220,000
8.A broker's listing agreement specifies that 5 ½ percent commission is to be paid on the sale price. The sales associate for the firm lists and sells the property and is to receive 55 percent of the total sale commission. How much will the sales associate earn if she sells the property for $400,000?
Solution $400,000 sales price x .055 (5.5%) = $22,000 broker commission x .55 (55%) sales associate's share = $12,100 sales associate's commission
1.Broker A is offering lots for $50,000 each. Broker A charges 7% and agrees to give Broker B 4% for each sale made by Broker B. Broker A sells 8 lots and Broker B sells 8 lots. What is the net commission income to Broker A?
Solution $50,000 x 7% = $3,500 per lot x 8 sales = $28,000 commission from Broker A sales; Broker A keeps 3% of Broker B sales $50,000 x 3% = $1,500 per lot x 8 sales = $12,000 commission from Broker B sales; $28,000 from Broker A sales + $12,000 from Broker B sales = $40,000 net commission income to Broker A. x,x,+ = net
6.XYZ Broker has an agreement in which 20% of the overall commission goes to the Listing Sales Associate and the remainder is split between the Broker and the Selling Sales Associate. How much does the Selling Sales Associate receive for a $70,000 sale at a 5.5% commission?
Solution $70,000 sales price x .055 (5.5%) = $3,850 total commission; $3,850 x .8 (80%) = $3,080 split between broker and selling sales associate; $3,080 x .5 (50%) = $1,540 Selling Sales Associate commission
2.Sales Associate is to receive 2/3 of a 6% commission. How much does Sales Associate earn for the sale of the N ½ of the NW ¼ of Section 13, Township 3 South, Range 26 West for $3,500 per acre?
Solution 640 ÷ 2 ÷ 4 = 80 acres x $3,500 per acre = $280,000 sales price x .06 (6%) = $16,800 broker commission; 2 ÷ 3 = .6667 x $16,800 = $11,200 commission to Sales Associate /,x,x,/,x
4.Broker's commission is 4% of the first $500,000; 3% of the next $100,000; and 1% of the balance. How much does broker earn if she sells the S ½ of the SE ¼ of Section 30, Township 3S Range 4E for $12,000 per acre?
Solution 640 ÷ 2 ÷ 4 = 80 acres;80 x $12,000 = $960,000 sale price; $960,000 price. Commission -$500,000. x .04 (4%). = $20,000 $460,000 -$100,000 x .03 (3%). =+$3,000 $360,000 x .01 (1%). =+$3,600 = $26,600 total commission
7.Sales associate is to receive 1/3 of a 6% commission. How much does sales associate earn if she sells the S ½ of the SE ¼ of the NE ¼ for $1,250 per acre?
Solution 640 ÷ 2 ÷ 4 ÷ 4 = 20 acres x $1,250 per acre = $25,000 price; $25,000 x .06 (6%) = $1,500 total commission ;1 ÷ 3 = .3333 sales associate's share x $1,500 = $500 (rounded)
4.How many acres are contained in a rectangular parcel that measures 330' x 660'?
Solution 660Side 1X 330Side = 2217,800Square feet 217,800Square feet÷ 43,560Square feet per acre =5 acres
2.How many square feet are in the NW ¼ of the SE ¼ of the SW ¼ of the W ½?
Solution 640 ÷ 4 ÷ 4 ÷ 4 ÷ 2 = 5 acres x 43,560 square feet per acre = 217,800 square feet
1.How many acres are contained in the NW ¼ of the SW ¼ of the SE ¼ of the SE ¼ of Section 27, Township 22 South, Range 37 East?
Solution 640 ÷ 4 ÷ 4 ÷ 4 ÷ 4 = 2.5 acres
10.A buyer paid $150,000 for a property and later sold the property for $200,000. What was the percentage of profit realized on this investment?
Solution$200,000 -$150,000 = $50,000 MADE; $50,000 MADE ÷ $150,000 PAID = .3333= 33 percent(rounded)
11.A developer purchased two 160-front foot lots for $26,900 net each and divided them into three lots of equal front footage. The developer sold the lots for $300 per front foot. Calculate the developer's percentage of profit. (Round to nearest whole percentage point.)
Solution$26,900 x 2 = $53,800 PAID for the lots; 160 x 2 = 320 front feet x $300 per front foot = $96,000 sale price; $96,000 -$53,800 = $42,200 MADE; $42,200 MADE ÷ $53,800 PAID = .784 = 78 percent profit
2.A home was purchased with a down payment of $20,000 and a loan of $380,000 at 6.5 percent interest for 30 years. Monthly payments are $2,401.86. What is the loan to value ratio?
Value = $20,0000 down payment + $380,000 loan = $400,000; Loan: $380,000 ÷ Value: $400,000 = .95 = 95%
net listing The sales price represents 100%. The net price to Seller represents the sales price (100%) minus the commission rate (say 6%) = 94% net percentage. Take Seller's net and divide by the net percentage to determine the listing price.
brokers commission =6% sellers net = 188000 / .94 / sellers net %= 100-6=94 listing price=200,000
formula for set back =
depth - set back = netbuildable area x width
formula for weekly salary
divide loan by 2.5
formula for acres in a parcel 1/4 and 1/4 1/4
just divide 160 + 40 =200
forumla for loan - value?
loan /value
When you are asked to find a percentage of a number, ______ the number times the percentage
multiply
5.Zoning restrictions on Jackson Avenue call for a 30 foot setback. Smith owns a lot on Jackson Avenue that measures 180' x 180'. How many square feet are available for construction of an improvement?
solution 180Total depth-30Setback= 150Net buildable depth 150Net buildable depthX 180Net buildable width=27,000 square feet available
3.Sales Associate earns 40% of the total commission. Broker's commission is computed as 6.5% of the first half of sales price and5.5% of the second half. How much does Sales Associate earn for a $65,000 sale.
solution Average commission is 6%; $65,000 x .06 (6%) = $3,900 broker's commission x .4 (40%) = $1,560 Sales Associate's share x,x
formula for Percentage of profit=
the percentage of profit is equal to the amount made (profit) divided by the amount paid(cost). Made/ paid = Percentageof Profit
8.There is a rule of thumb that an individual should borrow no more than 2.5 times their annual income to buy real estate. Based on this premise, what weekly salary would be required to qualify for a $180,000 mortgage loan?
$180,000 loan ÷ 2.5 income qualifying factor = $72,000 salary per year; $72,000 ÷ 52 weeks = $1,384.62 per week
9.The city is planning to pave a subdivision that contains300 lots. The estimated cost will be $2,000 per lot. If the city will pay 30% of the expense and owners will pay the balance through a special assessment, how much will the city pay?
$2,000 x 300 lots = $600,000 total cost x .3 (30%) = $180,000 city share x,x
1.Property taxes of $2,463.75 for the current year are unpaid. *Closing is on March 22 with the day of closing* owned by Seller. How do the property taxes appear on the Buyer and Seller closing statements?
$2,463.75 ÷ 365 = $6.75 per day x 81 days owned by Seller = $546.75 Debit seller / Credit buyer
Property taxes of $3,394.50 for the current year are unpaid. Closing is on February15 with the day of closing owned by Buyer. How do the property taxes appear on the Buyer and Seller closing statements?
$3,394.50 ÷ 365 = $9.30 per day x 45 days owned by Seller = $418.50 debit Seller / credit Buyer jan 31 + 14
New mortgage note: $33,355How much arethe note tax and the intangible tax and how do they appear on the closing statement?
$33,355 / 100 = 333.55 = 334 x $.35 = $116.90 note tax Debit buyer;$33,355 x .002 = $66.71 intangible tax Debit buyer
9.Bob has a salary of $45,000 per year. What is the maximum amount he should consider borrowing to buy a house?
$45,000 annual income x 2.5 income qualifying factor = $112,500
Borrower obtains a $5,000 straight-term loan at 9% interest. What is the total payment due if it is paid 4 month and 12 days later?
$5,000 x .09 (9%) = 450 interest per year ÷ 360 days = $1.25 per day x 132 days = $165 interest + $5,000 principal = $5,165 total payment due
A 6% commission means the commission is 6% or .06 times (multiplied by) the sales price. A $98,000 sales price with a 6% commissionmeans: $98,000 x .06 (or 6%) = _________
$5,880
paving cost is $50 per running foot. City will pay 40% of the cost. Your lot frontage is 100 feet. What is your special assessment?
$50 x 100 = $5,000 total cost x .6 (60%) your share = $3,000 ÷ 2 (each owner pays for 1/2 ) = $1,500 your share
5.A sales associate earns a 70% commission. The listed property sells for $600,000. The broker's commission is 5% on the first half and 3% on the second half. How much is the sales associate's commission?
$600,000 price. Commission -$300,000 first half x .05 (5%). = $15,000 $300,000 second half x .03 (3%) = +$9,000 = $24,000 broker commission x .7 (70%) sales associate% = $16,800 sales associate share
4A duplex is scheduled to *close* on July 11. On the first of the month the seller collected rent of $645 per unit. According to the contract for sale and purchase, the day of closing belongs to the seller. Calculate the proration and indicate how the entry appears on the closing statement.
$645 x 2 units = $1,290 monthly rent; 31 days in July; $1,290 ÷ 31 =$41.61 (rounded) rent per day; Buyer owns 20 days; 20 x $41.61 = $832.20 Debit seller / Credit buyer
3Closing is April 13. Buyer *owns the day of closing*. Property is rented for $650 paid in advance on the first of the month. How does the rent showup on the closing statement?
$650 ÷ 30 days = $21.67 (rounded) rent per day; Buyer owns 18 days; 18 x $21.67= $390.06 Debitseller / Credit buyer
Closing is April 13. The buyer owns the day of closing. The property is rented for $650 per month in advance on the first of the month. How does the rent show up on the closing statement?
$650 ÷ 30 days = $21.67 per day x 18 days owned by buyer = $390.06 debit seller / credit buyer 30-13
6.Borrower obtained 3-month term loan of $7,000 at 14% interest. What is the total payment due at the end of the term?
$7,000 x .14 (14%) = $980 annual interest; $980 ÷ 360 days = $2.7222 interest per day; $2.7222 x 90 days = $245 interest + $7,000principal = $7,245
5.Borrower obtained a straight-term loan at 7.5%. Over the 11 year term the borrower paid $7,177.50 interest. What was the principal amount of the loan?
$7,177.50total interest ÷ 11 years = $652.50 interest per year; $652.50 interest per year ÷ .075 (7.5%) annual interest rate = $8,700
3.Following are dimensions of 4 parcels of land. Which is an 8-acre tract? A.660' x 660' B.1320' x 330' C.660' x 1,320' D.660' x 528'
'D.660' x 528 Solution 43,560Square feet per acre X8Acres =348480Square feet in 8 acres
preparation for computing broker's commission:Convert 2/3 to a decimal. Multiply times 10,000(10,000 represents total commission -broker gets 2/3rds).Round to the nearest penny.
(2 ÷ 3)x 10,000 = 6,666.6666666667 = 6,666.67
4.Borrower obtained a straight-term loan of $20,000 at 6 percent interest. The loan was paid in full 1 year, 2 months and 6 days later. What was the total interest?
(Use a 360-day year) $20,000 x .06 (6%) = $1,200 annual interest; $1,200 ÷ 360 days = $3.3333 interest per day; # of days: 360 + 60 + 6 = 426 x $3.3333 = $1,420
Documentary Stamp Taxes on each Note:Note tax: ____(or portion) ofnew and assumed notes-Debit buyer
.35/$100
1.Debit to buyer is anything that_____ the amount of money the buyer brings to closing. 2.Credit to buyer is anything that _____ the amount of money the buyer brings to closing. 3.Credit to seller is anything that ____ the amount of money the seller takes from closing. 4.Debit to seller is anything that ____ the amount of money the seller takes from the closing
1. increases 2.decreases 3.increases 4.decreases
sales assiosate commission A home sold for $89,000 with an 8% sales commission. It was listed by Broker Allen and sold by Sales Associate Carlton who works for Broker Briggs. Broker Allen pays Broker Briggs 45% of the total commission. Broker Briggs pays Sales Associate Carlton 60% of its commission. How much does Sales Associate Carltonearn?
1. sale price x commission = total commission 2. selling company x % = company commission 3. sales associate x % =sales associate commission
formula for paving cost! The street in front of your house is to be paved at a cost of $45 per running foot. The city has agreed to pay 25% of the paving cost and will assess the property owners for the remainder. If your lot frontage on the street is 90 feet, what is your portion of the special assessment?
1. x (multiply feet for cost) 2. X (multiply % for owners share) if share subtract 3. / (paved / by 2) 90x45= 4050 x.75= 3037.50 /2
Broker's commission Broker's commission is 4% of the first $500,000of sales priceand 3% of the balance. How much does broker earn if she makes a $600,000 sale?
1.first $500,000 get 4% commsion=20,000 2.100,000 x .03 3. +3000 =23000
formula for acres in a parcel= 660' x 330'
1.multiply the area given= 2. sq ft / 43560 = acres
7.Investor is performing an analysis of a 100 x 200 2-story office building. Investor estimates that 30% of the space will be unusable for offices. How many 20' x 25' offices could be built?
100 x 200 = 20,000square feet x 70% (usable) = 14,000 square feet usable per floor x 2 stories = 28,000 total square feet usable; 20' x 25' = 500 square feet per office; 28,000 usable square feet ÷ 500 square feet per office = 56 offices 1. multiply first dimensions 2. multiply % 3. x 2 4. multiply second dimensions 5. / together x,x,/
3.The loan-to-value ratio is 78%.What is the down payment required to purchase a $180,000 property?
100% -78% = 22% down payment; $180,000 value x .22 (22%) = $39,600
2.Closing is on June 25 and Buyer *owns the day* of closing. Buyer is assuming the existing mortgage with a loan balance at closing of $122,440 and interest is 8%. How does the interest proration appear on Buyer's and Seller's closing statement.
122,440 x .08 (8%) = $9,795.20annual interest ÷ 365 = $26.84(rounded) interestper day; Seller owns 24 days; 24 x $26.84 = $644.16Debit seller / Credit buyer
8.The city has been petitioned to pave your street at a cost of $65 per running foot of property. The city has agreed to pay 45 percent of the cost. If your lot frontage on the street is 140 feet, what will your special assessment be for street paving?
140 front feet x $65 = $9,100 x .55 (55%) (owner's share) = $5,005 ÷ 2 (sides of street) = $2,502.50
1/4 and 1/4 1/4 =
160 and (+) 40 = 200 acres
Intangible tax: _______times the new mortgage-Debit buyer
2 mills or .002
6.A developer is planning to develop 30 acres. Developer expects that 25% of the property will not be available for development. If average lot size is 12,000 square feet, what is the maximum number of lots that developer will have?
30 x 43,560 = 1,306,800 square feet x 75% (available for development) =980,100 sq ft available ÷ 12,000 sqft per lot = 81.675 (rounded to 81) lots. 1. x 43560 2. x % 3. / sqft. x,x ,/
1 Acre =
43,560 square feet
The N ½ of the NW ¼ of the NE ¼ sold for $2,000 per acre.What was the sales price?
640 ÷ 2 ÷ 4 ÷ 4 = 20acres x $2,000per acre = $40,000
¼ Section = and ¼ ¼ ¼ ¼ Section =
640 ÷ 4 = 160 Acres 640 ÷ 4 ÷4 ÷4 ÷4 = 2.5 Acres
How many square feet in the NW ¼ of the SE ¼ of Section 13, T3N, R4W?
640 ÷ 4 ÷ 4 = 40 acres x 43,560 = 1,742,400 square feet
1 Section =
640acres
Deed tax:. formula ____ (or portion) of purchase priceof the property-Debit seller
70/$100
preparation for computing loan-to-value ratio: Take 80,000 divided by 100,000. Convertthedecimal number to a percentage.
80,000 ÷ 100,000 = .8 = .80 = 80%
monthly, quarterly, annually or may be paid along with the principal at the end of the term. To compute the interest paid, remember that the interest rate is the ANNUAL (360-day) rate of interest
A straight-term loan=
formula for Principal borrowed= Cohn obtains a straight-term loan. The interest rate on the loan is 7.5%, with quarterly interest payments of $1,485. What is the loan amount?
Annual interest ÷ Interest rate = Principal borrowed Interest payment =$1,485x 4 quarters=x 4Annual interest=$5,940÷ annual interest rate=÷ .075 (7.5%)Principal borrowed=$79,200
formula for Acreage =
Area ÷ 43,560 Square Feet
The sales price represents 100%. The net price to Seller represents the sales price (100%) minus the commission rate (say 6%) = 94% net percentage. Take Seller's net and divide by the net percentage to determine the listing price.
Broker's commission rate= 6% Seller's requested net= $188,000÷ Seller's net percentage= 100% -6% = 94%(.94) Listing price=$200,000
