math formulas

Question 1

Simple Interest Formula

Answer 1

Interest = (principal amount) x (rate of interest) (time)

Question 2

Commission Formula

Answer 2

Commission = (house selling price) x (commission percentage)

Question 3

Gross Rent Multiplier Formula

Answer 3

Gross Rent Multiplier = (property price) / (gross rental income)

Question 4

Annual Gross Rental Income

Answer 4

Annual Gross Rental Income = (monthly rental income) x (12)

Question 5

28/36 Rule or “The Mortgage Rule of Thumb.” Formula

Answer 5

Housing costs to qualify for most loans= (gross monthly or annual income) x (.28 or .36)

Question 6

Discount Points Formulas

Answer 6

Discount Points = Prepaid Interest

Break Even Point = (points cost) / (monthly payment savings)

Question 7

Property Tax Rate

Answer 7

Property Tax Rate = (assessed value) x (mill rate)

1 mill = equal to 1/1,000th of a dollar or $1 in property tax.

Question 8

Assessed Value

Answer 8

Assessed Value = (assessment rate) x (market value)

Question 9

how many square feet in 1 Acre?

Answer 9

43560 square feet

Question 10

find area formula

Answer 10

Area (ft2) = (length ft) x (width ft)

Question 11

find perimeter

Answer 11

Perimeter = (side) + (side) + (side) + (side)

Question 12

the 3 percentage formulas are:

Answer 12

1. PART = TOTAL × RATE
2. TOTAL = PART ÷ RATE
   3. RATE = PART ÷ TOTAL

If PART is unknown, then multiply the two known numbers.

If PART is known, then divide.

When you divide, always enter PART into the calculator first.

Question 13

Loan to Value (LTV) Ratio:

Answer 13

LTV Ratio = APV ÷ MA

LTV Ratio = Loan to Value Ratio
APV = Appraised Property Value

MA = Mortgage Amount

Question 14

Simple Interest Formula

Answer 14

A = P(1 + rt)

A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
R = Rate of Interest per year as a percent; R = r * 100
t = Time Period involved in months or years

Question 15

Gross Rent Multiplier

Answer 15

Gross Rent Multiplier = Property Price ÷ Gross Annual Rental Income

Question 16

Annual Gross Rental Income

Answer 16

Monthly Rental Income × 12

Question 17

Property Tax Formula

Answer 17

Property Tax Rate = Assessed Value × Mill Rate

Assessed Value = Assessment Market × Market Value

Question 18

what is a discount point?

Answer 18

discount points are basically prepaid interest.

A discount point or mortgage point is an up-front fee that lowers the interest rate on a home loan. One discount point costs 1% of your total home loan amount.

Question 19

Discount Points Formula

Answer 19

Break-Even Point = Points Cost ÷ Monthly Payment Savings

Question 20

“The Mortgage Rule of Thumb” (28/36 Rule) Formula

Answer 20

Housing Costs to Qualify for Most Loans = Gross Monthly or Annual Income × .28

Question 21

Prorating Interest on Loans Formula

Answer 21

Total Interest = (Principal Balance x Interest Rate) ÷ 365 days of the year