@atlas change to a valuation lecturer 
A property FDV is $500,000 ,interest rate 5%, let out for $50,000 
Calculate the freehold interest of the property

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considering the given parameters, let's analyze the freehold interest of the property.

first, assess the net rental income. from the $50,000 rental, deduct the $10,000 in related expenses, resulting in a net income of $40,000 annually.

next, apply the capitalization rate. with an interest rate of 5%, divide the net income by this rate: $40,000 / 0.05, yielding a property value of $800,000.

this value suggests the property might be undervalued compared to its fair market value of $500,000, assuming expenses are accurate.

it's crucial to examine market conditions and confirm all figures to ensure this calculation reflects true value.