Unit 13-Math Flashcards
The process of paying off a loan in equal installments of principal and interest
Amortization
The cost of using money
Interest
The seller’s net after commission is how much money?
The amount of money left after the real estate commission is deducted from the sales price.
Sales price - commission = sellers net after commission
T bar method is:
Part
———————-———-
Total | Rate
Formula for interest computations:
Principal (total) x rate (%) x time (in months i.e. 2/12) = interest (part)
A method of increasing the lenders yield on a loan without increasing the interest rate. One point = 1% or the loan amount
Loan discount
Formula for surface area of a triangle
1/2(base x height)
OR
(base x height) / 2
Area is expressed in
Square units
Volume is expressed in
Cubic units
The formula to compute the volume of a triangular prism:
1/2 (length x width x height)
How many days are in a statutory or banker’s year?
360 days
How many days are in a banker’s month?
30 days
Loan interest, taxes, rents, fuel, utility bills. Allowances necessary to ensure that expense are divided fairly between the seller and the buyer.
Prorations
If two dimensions are given for a tract of land but the dimensions are not labeled, what is the first dimension assumed to be?
The frontage
What is an accrued expense item?
Items to be prorated that are owed by the seller but eventually will be paid by the buyer. (Such as interest on an assumed loan or accrued ad valorem property taxes)
