Hassle-free Cashflow Minute Lesson 6:  Math Behind Interest Rate
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Hassle-free Cashflow Minute Lesson 6: Math Behind Interest Rate

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David Campbell, professional real estate investor and developer teaches us how to calculate interest, rate, and capital for any real estate transaction.

David Campbell, professional real estate investor and developer teaches us how to calculate interest, rate, and capital for any real estate transaction.

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Hassle-free Cashflow Minute Lesson 6:  Math Behind Interest Rate Hassle-free Cashflow Minute Lesson 6: Math Behind Interest Rate Presentation Transcript

  • Hassle-free Cashflow Minute Lesson 6: Math Behind Interest Rate Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com ©2011 All Rights Reserved
  • Interest = rate x capitalRate = interest / capitalCapital = interest / ratewww.HassleFreeCashFlowInvesting.com
  • Case Study: Interest = rate x capital $100 = 10% x $1,000 www.HassleFreeCashFlowInvesting.com
  • Case Study: Rate = interest / capital 10% = $100 / $1,000 www.HassleFreeCashFlowInvesting.com
  • Case Study: Capital = interest / rate $1,000 = $100 / 10% www.HassleFreeCashFlowInvesting.com
  • CALCULATING PRORATED INTERESTwww.HassleFreeCashFlowInvesting.com
  • daily interest rate =annual rate / # of days per year borrowers like to prorate using 365 days 10% annual interest /365 days = 0.0274% per day lenders like to prorate using 360 days 10% annual interest /365 days = 0.0278% per day www.HassleFreeCashFlowInvesting.com
  • CALCULATING PRORATED INTEREST 0.0277% per daydaily interest rate x 108 daysx number of days x $100,000 x principal $2,991.60 proratedprorated interest interest www.HassleFreeCashFlowInvesting.com
  • David Campbell over $800 million of real estate transaction / advisory experience sign up for my FREE real estate investor education newsletter www.HassleFreeCashFlowInvesting.comdavid@HassleFreeCashFlowInvesting.com