Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the service is used to find the prorated amount.
Know MoreThe term "prorate" comes from the Latin "pro rata," which means "in proportion," according to Wikipedia. Prorated amounts typically apply to rent, insurance and other services that are paid for a specified time period. When an insurance policy is canceled, the prorated amount due is calculated by dividing the number of days used in the policy period by the total number of days for the policy. The result is multiplied by the policy premium to calculate the prorated amount due.
Learn more about Financial CalculationsThe capital gains yield of a stock can be calculated by dividing the change in price of the stock after the first period by the original price. Investopedia explains that the formula for this is (P1 - P0) / P0, where P1 equals the original price paid and P0 equals the price after the first period.
Full Answer >Home equity can be calculated by subtracting the current loan balance from the current home value, according to SFGate. Home equity percentage can be determined by dividing the home equity by the home's current value. An experienced professional appraiser should be used to determine a home's current value.
Full Answer >Required minimum distributions, or RMDs, from an IRA are calculated by dividing the year-end value of the IRA by the distribution period determined by the IRS, according to BankRate. RMDs must start being withdrawn no later than April 1 of the year following the year the account holder turns 70 1/2.
Full Answer >According to AccountingTools, gross sales are calculated by adding up the revenue from all sales transactions without taking into account any costs. This is in contrast to net sales, which subtract costs like operating expenses or taxes.
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