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Olenka [21]
3 years ago
9

A real estate agent knows that he will receive a commission of $4,250 from the sale of a property when the deal is completed 37

days from now. Needing cash today, though, he signs a discount note at a credit union, using his expected commission as the maturity value. The discount rate is 9.55%. Find the effective rate (APR).
Mathematics
1 answer:
Jlenok [28]3 years ago
7 0
The effective rate can be conveniently calculated from
.. effective rate = r/(1-rt)
Assuming a 365 day year, this is
.. = 9.55%/(1 -0.0955*(37/365))
.. ≈ 9.64%
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(2) Lin is wrong and the reason is that she started inside the parenthesis and this also is mathematically incorrect. The digits inside the parenthesis are "not like terms" and hence calculating 4 - 9x = -5x is very incorrect (the same way you cannot correctly calculate 500 metres minus 200 inches. You must make sure they are both in meters or in inches, that is both must be like terms).

(3) Jada is very correct in using the distributive property and ended up with the only correct solution. The digits on the right hand side of the expression  was solved first and that resulted in -12 + 27x. The reason being that the number outside the parenthesis which is -3, multiplied both digits inside the parenthesis. The minus sign had a major effect, and after simplifying the right hand side the expression now becomes;

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