On Apr 10, 11:04 am, "Stephen J. Herschkorn" <sjhersc...@netscape.net> 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?
One other (obvious) point is that the SAT is a multiple choice test. So yes, it's possible that they want some complicated analysis where it would matter whether the interest was paid on the first of the month or the last, but I bet it wouldn't. Specifically, if you think "hmm, do they mean A or B or C" then you could do the math for A, B, and C, and see which if any of those answers appear as a possibility. In all likelihood, only one of them would.