Math Formulas

Question 1

Simple Interest formula

Hint: think principal amount

Answer 1

Interest = (principal amount) X (commission percentage)

Question 2

Commission formula

Answer 2

Commission = (house selling price) X (Commission percentage)

Question 3

Gross Rent Multiplier Formulas

Answer 3

Gross Rent Multiplier = (Property price)/ (Gross rental income)

Question 4

Annual Gross rental income

Answer 4

Monthly income x12

Question 5

28/36 Rule ( The Mortgage rule of Thumb)

Answer 5

Formula Housing cost 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

Question 7

Break even point

Hint: think of money

Answer 7

Points cost/monthly payment savings

Question 8

Property tax formulas

Answer 8

Property tax rate = (assessed value) X. (Mill rate)

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

Question 9

What does an Acre equal to

Answer 9

1 acre = 43560 square feet

Question 10

How to find Area(ft2)

Answer 10

(Length ft) X (Width ft)

Question 11

How to find the perimeter

Answer 11

(Side)+(side)+(side)+(side)