The Math Forum

Search All of the Math Forum:

Views expressed in these public forums are not endorsed by NCTM or The Math Forum.

Math Forum » Discussions » sci.math.* » sci.math

Notice: We are no longer accepting new posts, but the forums will continue to be readable.

Topic: An old SAT problem
Replies: 11   Last Post: Apr 11, 2007 4:37 PM

Advanced Search

Back to Topic List Back to Topic List Jump to Tree View Jump to Tree View   Messages: [ Previous | Next ]

Posts: 1,683
Registered: 2/12/07
Re: An old SAT problem
Posted: Apr 10, 2007 10:46 AM
  Click to see the message monospaced in plain text Plain Text   Click to reply to this topic Reply

quasi wrote:
> On 9 Apr 2007 19:57:43 -0700, wrote:

> >
> >I ran across old (1926) SAT math problems and
> >one of them puzzles me -- it's stated as follows:
> >
> > A man buys a house and lot for $8,500 but is obliged to pay
> > $500 back taxes on the property. He leases the property at the
> > rate of $75 a month. What rate of interest does this investment
> > bear?
> >
> >I think I'm missing something here -- any clue?
> >
> > - Jan

> How much was the total amount invested?
> How much income does he earn in 1 year?
> The simple annual interest rate is just the annual income expressed as
> a percent of the investment.

Yes, but the problem is poorly posed. It did not ask for the simple
annual rate.
It just asked for "rate of interest". The answer to this question
depends on a lot
of unstated assumptions/questions.

(1) Was the $75/month received also invested? Was the $75 received at
the *start* or the *end* of
each month? If the $75/month was also invested, at what rate was it
(2) Was the interest compounded monthly? etc.


To get the total return depends on these questions. The question did
not ask for *simple annual return*.

Point your RSS reader here for a feed of the latest messages in this topic.

[Privacy Policy] [Terms of Use]

© The Math Forum at NCTM 1994-2018. All Rights Reserved.