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WHAT IS THE VALUE OF THE PROPERTY CASH
BACK CERTIFICATE AFTER 25 YEARS WHEN A DEVELOPER SELLS A HOME
OF $200,000?
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EXAMPLE
CALCULATION FOR THE PROPERTY CASH BACK PROGRAM BASED ON AN
INITIAL MARKETING FEE OF $9,600.00 PAID BY THE DEVELOPER
After
25 years the Property Cash Back Certificate has a
Value of $203,813.21
Our
original investment of $9,600.00 would be worth $203,813.21
after 25 years. This assumes an annual rate of return
of 13% based on investing into high yield Government
Bonds.
Cash
Back Distribution to Partners on a $200,000 Property
Purchase Price:
| 70% |
Home
Builder |
$142,669.24 |
| 15% |
Equity
Branch Manager |
$
30,571.98 |
| 15% |
Equity
Head Office |
$
30,571.98 |
| 100% |
Property
Cash Back Program - Total Payout |
$203,813.21 |
:
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Input Summary
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|
Years
|
25
|
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Rate of return
|
13.0%
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Initial Marketing Fee of Cash Back Program Invested
|
$9,600.00
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|
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Results Summary
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Compounded interest return
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$163,013.21
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Simple interest return
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$31,200.00
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Total invested capital
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$9,600.00
|
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Value of Property Cash Back Certificate at Maturity
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$203,813.21
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Property Cash Back Certificate Balance by Year
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Year
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After
Tax
Net Interest
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Total
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|
0
|
$0.00
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$9,600.00
|
|
1
|
$1,248.00
|
$10,848.00
|
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2
|
$1,410.24
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$12,258.24
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3
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$1,593.57
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$13,851.81
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4
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$1,800.74
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$15,652.55
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5
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$2,034.83
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$17,687.38
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6
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$2,299.36
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$19,986.74
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7
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$2,598.28
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$22,585.01
|
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8
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$2,936.05
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$25,521.06
|
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9
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$3,317.74
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$28,838.80
|
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10
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$3,749.04
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$32,587.85
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11
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$4,236.42
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$36,824.27
|
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12
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$4,787.15
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$41,611.42
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13
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$5,409.48
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$47,020.91
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14
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$6,112.72
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$53,133.62
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15
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$6,907.37
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$60,041.00
|
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16
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$7,805.33
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$67,846.33
|
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17
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$8,820.02
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$76,666.35
|
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18
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$9,966.63
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$86,632.97
|
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19
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$11,262.29
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$97,895.26
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20
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$12,726.38
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$110,621.64
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21
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$14,380.81
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$125,002.46
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22
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$16,250.32
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$141,252.78
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23
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$18,362.86
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$159,615.64
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24
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$20,750.03
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$180,365.67
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25
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$23,447.54
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$203,813.21
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Equity Real Estate Investment & Business Trust
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