Friday, March 20, 2015
Example of Home Selling Profit Calculation
PURCHASE
Year house bought: 2005
House buying price: $ 500,000
Downpayment (20%): $ 100,000
Mortgage amount: $ 400, 000
Mortgage term: 30 years
SELL
Year home sold (10 years after purchase): 2015
Home selling price: $600,000
Total mortgage payments to the Principal after 10 years: $ 60,000
Market value increase: $600,000 - $500,000 = $ 100,000
EQUITY
Equity Quick Calculation:
Total Equity = Down Payment + Market Value Increase + Mortgage Payments
Total Equity = $ 100,000 + $ 100,000 + $ 60,000
Total Equity = $ 260,000
SELLING COSTS
Breakdown of the Total Cost of Selling Home (8%):
a. Sales commissions (6%): $ 36,000
b. Title and escrow fees (1.5%): $ 9,000
c. Property marketing preparation costs (0.5%): $ 3,000
d. Renovation costs: $ 12,000
Total Cost of Selling Home = $ 36,000 + $ 9,000 + $ 3,000 + $ 12,000
Total Cost of Selling Home = $ 60,000
NET PROFIT
Total Profit Calculation:
Total Profit = Market Value Increase - Total Cost of Selling Home
Total Profit = $ 100,000 - $ 60,000
Total Profit = $ 40,000
YEARLY PROFIT
Yearly Profit = Total Profit / 10 years
Yearly Profit = $ 40,000 / 10
Yearly Profit = $ 4,000
MONTHLY PROFIT
Monthly Profit = Yearly Profit / 12
Monthly Profit = $ 4,000 / 12
Monthly Profit = $ 333
--------------------------------------------------------------------------
RENTING for 10 YEARS & SAVING $2000 per month
Yearly Savings = $ 2,000 x 12
Yearly Savings = $ 24,000
Total Savings for 10 years = $ 24,000 x 10
Total Savings for 10 years = $ 240,000
COMPARISON: BUYING HOUSE or RENTING & SAVING
In order to match the $ 240,000 total savings on renting for 10 years,
the market value of the house after 10 years must be 60% greater than the original purchase price.
Calculation Proving:
60% Market value increase after 10 years:
Market value = $ 500,000 x 1.6
Market value = $ 800,000
Market value increase:
Market value increase = $ 800,000 - $ 500,000
Market value increase = $ 300,000
Net Profit:
Total Profit Calculation:
Total Profit = Market Value Increase - Total Cost of Selling Home
Total Profit = $ 300,000 - $ 60,000
Total Profit = $ 240,000
Return on Investment (ROI):
ROI = Total Profit / Original Price
ROI = $ 240,000 / $ 500,000
ROI = 48 %
Conclusion:
In order to match the $ 240,000 total savings on renting for 10 years,
the ROI on buying and selling a house must be 48%.
Sunday, March 8, 2015
How long to boil 1 Liter of water in 1500 watts kettle
Solution:
Cp = 4.19 KJ/(kg·C)
This is the specific heat of water at 15 °C and 101.325 kPa atmospheric pressure.
This is the amount of energy required to raise the temperature of 1 kg ( 1 Liter ) of water by 1 °C.
Density of water:
1 kg/Liter
1000 kg/cubic meter
1 metric ton/cubic meter
1 g/cubic centimeter
1 g/ml
Boiling water for coffee/tea:
1 Liter is approximately 4 cups (good for a family of four)
100 °C is the boiling point of water at a pressure of 1 atm (101.325 kPa)
Temperature of cold tap water and hot water:
cold tap water is around 15 °C
in most homes, hot water heaters are set at 60 °C (140 °F)
Heat Calculation Formula:
Q = m x Cp x (T2-T1)
where:
Q = heat energy required to boil water, KJ
m = mass of water, kg
Cp = specific heat of water, 4.19 KJ/(kg·C)
T2 = boiling point of water, 100 C
T1 = temperature of cold tap water, 15 C
Q = 1 kg x 4.19 KJ/(kg·C) x (100 C - 15 C)
Q = 357 KJ
Black and Decker Kettle Power Rating:
1500 watts heating power
1500 watts is equal to 1.5 KW (KJ/sec)
Time to boil 1 Liter (1 kg) of water from 15 C:
assuming no heat is lost,
time = Q/Power of kettle
time = 357 KJ/1.5 KJ per second
time = 238 seconds
time = 4 minutes
Note: under the same conditions,
a. boiling 2 Liters of water would double the time to boil --> 8 minutes
b. using twice the kettle power (3000 watts) requires only half the boiling time --> 2 minutes
Time to raise 1 Liter of water 1 degree Celsius
using the same 1500-watt kettle, and assuming no heat loss
Q = 1 kg x 4.19 KJ/(kg·C) x (1 C)
Q = 4.19 KJ
time = 4.19 KJ/1.5 KJ per second
time = 3 sec
Note:
The time required to raise the temperature of water 1 degree C is dependent on,
a. amount (mass) of water
b. power rating of kettle
Cp = 4.19 KJ/(kg·C)
This is the specific heat of water at 15 °C and 101.325 kPa atmospheric pressure.
This is the amount of energy required to raise the temperature of 1 kg ( 1 Liter ) of water by 1 °C.
Density of water:
1 kg/Liter
1000 kg/cubic meter
1 metric ton/cubic meter
1 g/cubic centimeter
1 g/ml
Boiling water for coffee/tea:
1 Liter is approximately 4 cups (good for a family of four)
100 °C is the boiling point of water at a pressure of 1 atm (101.325 kPa)
Temperature of cold tap water and hot water:
cold tap water is around 15 °C
in most homes, hot water heaters are set at 60 °C (140 °F)
Heat Calculation Formula:
Q = m x Cp x (T2-T1)
where:
Q = heat energy required to boil water, KJ
m = mass of water, kg
Cp = specific heat of water, 4.19 KJ/(kg·C)
T2 = boiling point of water, 100 C
T1 = temperature of cold tap water, 15 C
Q = 1 kg x 4.19 KJ/(kg·C) x (100 C - 15 C)
Q = 357 KJ
Black and Decker Kettle Power Rating:
1500 watts heating power
1500 watts is equal to 1.5 KW (KJ/sec)
Time to boil 1 Liter (1 kg) of water from 15 C:
assuming no heat is lost,
time = Q/Power of kettle
time = 357 KJ/1.5 KJ per second
time = 238 seconds
time = 4 minutes
Note: under the same conditions,
a. boiling 2 Liters of water would double the time to boil --> 8 minutes
b. using twice the kettle power (3000 watts) requires only half the boiling time --> 2 minutes
Time to raise 1 Liter of water 1 degree Celsius
using the same 1500-watt kettle, and assuming no heat loss
Q = 1 kg x 4.19 KJ/(kg·C) x (1 C)
Q = 4.19 KJ
time = 4.19 KJ/1.5 KJ per second
time = 3 sec
Note:
The time required to raise the temperature of water 1 degree C is dependent on,
a. amount (mass) of water
b. power rating of kettle
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