 ## Presentation on theme: "© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 1 New York Real Estate for Salespersons, 5th e By Marcia Darvin Spada Cengage Learning."— Presentation transcript:

© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 3 Chapter 8 Key Terms  Acre  Commission  Front foot  Gross income  Interest  Net operating income  Point  Principal  Property tax rate

© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 4 Commission Problems Sales price x Percentage of commission = Commission  If a salesperson lists and sells a property for \$200,000 and receives 60% of the 7% commission paid to the employing broker, how much does the salesperson receive? \$200,000 x 0.07 = \$14,000 0.60 x \$14,000 = \$8,400

© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 5 Principal and Interest Problems Loan balance x rate of interest = annual interest  A mortgage balance is currently \$43,627.14 and the amount of interest applied to the loan this month is \$309. What is the annual interest rate? \$309 x 12 mos = \$3,708 annual interest 3,708 ÷ \$43,627.14 =.0849929 = 8.5% rounded

© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 6 Calculating Area and Length Rectangle area= length x width Square area = side x side Triangle area = (.05 x base) x height Acre = 43,560 sq ft  A rectangular acre of land has a width of 165 feet. What is the depth of the property? 43,560 ÷ 165 = 264 feet

© 2013 All rights reserved. Chapter 8 Real Estate Mathematics 7 Property Tax Rate Assessed value x tax rate =annual taxes  If the assessed value of a property is \$136,000 and the annual tax paid is \$1,700, what is the tax rate per \$100 of assessed value? \$1,700 ÷ \$136,000 = 0.0125 = \$1.25

© 2013 All rights reserved. Profit/Loss on Sale of Real Estate Investment x percent of profit = dollars in profit Investment x percent of loss =dollars lost  Jaycee purchases land in 2001 for \$35,000. She plants trees in 2004 costing \$15,500. In 2006, she sells the land for \$46,000. What is her percentage of loss? \$50,500 - \$46,000 = \$4,500 \$4,500 ÷ \$50,500 = 8.91%, 9% rounded Chapter 8 Real Estate Mathematics8