Reversionaryfactor
Barron's Real Estate Dictionary:
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Reversionaryfactor
The mathematical factor that indicates the present worth of one dollar to be received in the future. Same as present value of one. The formula is Reversionary factor = ——1— (1 + i) where i = interest rate n = number of years (or periods)
Example: The reversionary factor for 30 years at 12% is .03338.
The present value of the receipt of land that will be worth $50,000 in 30 years is $1,690 (.03338 °— $50,000).
Example: The reversionary factor for 30 years at 12% is .03338.
The present value of the receipt of land that will be worth $50,000 in 30 years is $1,690 (.03338 °— $50,000).
| Reversionary Value, Reversionary Interest | |
| Review Appraiser, Revocation |
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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