Calculation Method 8 – Square Foot Amount
The system uses this setup information for this calculation:
Area of Unit: 10,000
New Rate (from assumption detail): 3.00
Growth Pattern (from assumption detail): PCT01
The system calculates and applies this detail assumption in the first month of the assumption. Because the first six years of the budget are occupied by a REM lease, the assumption and associated detail assumption do not kick in until year 2007. Because this assumption uses a growth pattern, the system grows the rate from the assumption detail for seven years and then multiply that grown rate by the square footage of the unit.
This table shows how the system calculates the grown detail rate:
Year |
Calculation for Growth Pattern: PCT01 (percentage) |
Grown Detail Rate |
|---|---|---|
1 |
(3.0 × .01) + 3.0 = 3.03 |
3.03 |
2 |
(3.03 × .02) + 3.03 = 3.0906 |
3.0906 |
3 |
(3.0906 ×.03) + 3.0906 = 3.183318 |
3.183318 |
4 |
(3.183318 × .04) + 3.183318 = 3.31065072 |
3.31065072 |
5 |
(3.31065072 × .05) + 3.31065072 = 3.476183256 |
3.476183256 |
6 |
(3.476183256 × .06) + 3.476183256 = 3.68475425136 |
3.68475425136 |
7 |
(3.68475425136 × .07) + 3.68475425136 = 3.9426870489552 |
3.9426870489552 |
The resulting calculation for this detail assumption is:
39426.87 USD = 3.946787 USD (grown detail rate) × 10,000 (square footage of unit)
Amount = Grown Detail Rate × Unit Sq. Footage