Texas Principles of Real Estate II| UPDATE
|COMPREHENSIVE MOST TESTED QUESTIONS
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Terms in this set (305)
Mixed Numbers A number containing both a whole number and a
fraction (examples: 1⅓; 9⅞)
Improper Fractions a fraction with its numerator equal to or greater
than its denominator
Commission Calculation Sales price X rate of commission = total
commission
Solving for the Commission Rate Commission Rate = Commission ÷ Price
Solving for the Property's Price Price = Commission ÷ Commission Rate
Profit Profit (or Loss) = Selling price - Original cost
Profit Percentage Percentage of profit = Profit ÷ Original cost
, Profit Margin Profit margin = Profit ÷ Selling price
Interest the price paid for the use of borrowed money
3 types of interest calculations Simple interest, add-on interest, and compound
interest
Simple interest Interest = principal x rate x time
Add-on interest loan amount x contracted interest rate x number
of payments
Add-on interest APR APR = 2 x number of payment periods in one year
x total financing charges ÷ (principal, or amount
borrowed x (number of scheduled payments +1)
Compound interest interest which is computed on the principal
amount plus the accrued interest.
Compound Interest Formula Compound amount = Initial deposit (1 + Interest
rate)n
Points a one-time service charge to the borrower for
making the loan
Two types of points origination fee and discount points
Loan-to-Value Ratio (LTV) expresses the relationship between a property's
purchase price and its loan amount.
Loan-to-Value formula LTV ratio = (Loan amount ÷ Value)
|COMPREHENSIVE MOST TESTED QUESTIONS
AND VERIFIED SOLUTIONS|GET IT 100%
ACCURATE!!
Save
Terms in this set (305)
Mixed Numbers A number containing both a whole number and a
fraction (examples: 1⅓; 9⅞)
Improper Fractions a fraction with its numerator equal to or greater
than its denominator
Commission Calculation Sales price X rate of commission = total
commission
Solving for the Commission Rate Commission Rate = Commission ÷ Price
Solving for the Property's Price Price = Commission ÷ Commission Rate
Profit Profit (or Loss) = Selling price - Original cost
Profit Percentage Percentage of profit = Profit ÷ Original cost
, Profit Margin Profit margin = Profit ÷ Selling price
Interest the price paid for the use of borrowed money
3 types of interest calculations Simple interest, add-on interest, and compound
interest
Simple interest Interest = principal x rate x time
Add-on interest loan amount x contracted interest rate x number
of payments
Add-on interest APR APR = 2 x number of payment periods in one year
x total financing charges ÷ (principal, or amount
borrowed x (number of scheduled payments +1)
Compound interest interest which is computed on the principal
amount plus the accrued interest.
Compound Interest Formula Compound amount = Initial deposit (1 + Interest
rate)n
Points a one-time service charge to the borrower for
making the loan
Two types of points origination fee and discount points
Loan-to-Value Ratio (LTV) expresses the relationship between a property's
purchase price and its loan amount.
Loan-to-Value formula LTV ratio = (Loan amount ÷ Value)
