The Mathematics of Real Estate Appraisal（房地产评估的数学）.pdf

The Mathematics of Real Estate Appraisal David Ellerman Economics Department University of California at Riverside May 2004 Table of Contents Introduction 1 The Six Functions of One 2 The Amount of One at Compound Interest 2 The Present Value Reversion of One 2 The Present Value of an Ordinary Annuity of One 3 The Installment to Amortize One 4 The Accumulation of One per Period 5 The Sinking Fund Factor 6 Summary of Six Functions 6 Amortization Tables 7 Some Formulas of Financial Mathematics 7 Direct Capitalization Formulas 10 The IRV Formula 10 The Cap-Rate Style of Reasoning 12 Adjusting Capitalization Rates for Appreciation and Depreciation 13 Band of Investment Formulas 15 Interest-only Loan, No Change in Asset Value, and No Sale of Asset 15 Interest-only Loan, No Change in Asset Value, and Resale of Asset after H Years. 16 Mortgage Amortization over Holding Period, Asset Depreciation Equal to Mortgage, and Asset Resale after H Years 17 Ellwood and Akerson Formulas with Constant Income 17 The Valuation of Changing Income Streams 19 Introduction 19 Valuing Income Streams Defined by Linear Recurrence Relations 19 Application 1: The Straight Line Changing Annuity Formula 21 Application 2: The Constant Ratio Changing Annuity Formula 21 Application 3: The Ellwood J Factor and Ellwood R Formulas 22 The Straight Line and Hoskold Capitalization Rates 24 The Straight Line Capitalization Formula 24 The Hoskold Formula 2