American Cities; Their Methods of Business
American Cities; Their Methods of Business
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Compound interest on taxes paid.
4. Contingencies (e.g., lawyer's fees).
The following is quoted from an article by Mr.
Thomas Adams: "Qaims regarding large profits on land purchases are often misleading, because the factor of compound interest is ignored. Frequently one hears of people accepting the same price as they paid for a lot after holding it five or more years and feeling satisfied with the result. They are 'glad to have escaped without loss, except in regard to the Digitized by Google... I02 AMERICAN CITIES AND THEIR BUSINESS amount they have paid for taxes/ As a matter of fact they have lost much more than the taxes. Let us assume that they spent $i,ooo for a lot in 1910 and sold it in 1915 for the same amount, meanwhile paying $100 in taxes and other ex- penses. The loss of interest for five years at 7 per cent, is the difference between $1,000 and $1,402, viz., $402. The total loss in taxes and interest is thus $502, or over 50 per cent, of the capital invested. Where land is purchased in lots, and city taxes have to be paid upon it, the purchaser will usually have to double its value every five or six years that he holds it without use, in order to ascertain its cost to him.
What to read after American Cities; Their Methods of Business?
You can find similar books in the "Read Also" column, or choose other free books by Gilbert, Arthur Benson. [from Old Catalog] to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Compound interest on taxes paid.
4. Contingencies (e.g., lawyer's fees).
The following is quoted from an article by Mr.
Thomas Adams: "Qaims regarding large profits on land purchases are often misleading, because the factor of compound interest is ignored. Frequently one hears of people accepting the same price as they paid for a lot after holding it five or more years and feeling satisfied with the result. They are 'glad to have escaped without loss, except in regard to the Digitized by Google... I02 AMERICAN CITIES AND THEIR BUSINESS amount they have paid for taxes/ As a matter of fact they have lost much more than the taxes. Let us assume that they spent $i,ooo for a lot in 1910 and sold it in 1915 for the same amount, meanwhile paying $100 in taxes and other ex- penses. The loss of interest for five years at 7 per cent, is the difference between $1,000 and $1,402, viz., $402. The total loss in taxes and interest is thus $502, or over 50 per cent, of the capital invested. Where land is purchased in lots, and city taxes have to be paid upon it, the purchaser will usually have to double its value every five or six years that he holds it without use, in order to ascertain its cost to him.
What to read after American Cities; Their Methods of Business?
You can find similar books in the "Read Also" column, or choose other free books by Gilbert, Arthur Benson. [from Old Catalog] to read onlineMoreLess
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