License Math 4 Flashcards
Investment
1
Q
Total appreciation rate
A
=Total appreciation / Original Price
2
Q
Average annual appreciation rate
A
=Total appreciation rate / Number of years
3
Q
Appreciated value (compounded)
A
=Beginning value x (1 + annual rate) x (1 + annual rate)…
4
Q
Rate of Return
A
Rate of Return = NOI/Value
Also: Value = Income / Rate
Income = Value x Rate
5
Q
Tax liability
A
= (NOI + Reserves- Interest expense - Depreciation) x Tax bracket
6
Q
Return on Investment
A
=NOI / Price
7
Q
Return on Equity
A
= Cashflow / Equity
8
Q
Equity
A
=Value - Liens
9
Q
Cashflow
A
= NOI - P&I Payment
