Question: Let $S$ denote the set of all complex numbers of the form $\frac{z+1}{z-3}$, where $z$ varies over the set of all complex numbers with $|z|=1.$ Find the locus of the points in set $S$.
My approach:
Let $z=x+iy$, with $x,y\in\mathbb{R}$ such that $|z|=1\implies |z|^2=1$. This implies that we must have $x^2+y^2=1$. Now $z+1=(x+1)+iy$ and $z-3=(x-3)+iy$.
Thus \begin{align*} \frac{z+1}{z-3}&=\frac{(z+1)(\overline{z-3})}{|z-3|^2}\\ &=\frac{(z+1)(\overline{z}-3)}{|z-3|^2}\\ &=\frac{x^2-2x-3+y^2-4iy}{(x-3)^2+y^2}\\ &=\frac{-2x-2-4iy}{10-6x}\\ &=\frac{-x-1-2iy}{5-3x}. \end{align*}
Thus we have $$ \Re\left(\frac{z+1}{z-3}\right)=\frac{x+1}{3x-5} $$ and $$ \Im\left(\frac{z+1}{z-3}\right)=\frac{2y}{3x-5},$$ and our task is to find a relationship between these two given that $|z|=1$.
For our ease let us have $\alpha=\frac{z+1}{z-3}\,\, \forall z$ satisfying $|z|=1$.
Now we obtain two useful information using the triangle inequality. We have
$$ |z+1|\le |z|+1=2 $$ and
$$ |z-3|\le |z|+3=4. $$
From here we can conclude that $$|z+1|^2=(x+1)^2+y^2=2+2x\le 4 \iff 1+x\le 2\text{ and } |z-3|^2=5-3x\le 16.$$
Thus we have $$0\le 1+x\le 2 \text{ and } 0\le 5-3x\le 16\implies -1\le x\le 1.$$
Observe that even from $x^2+y^2=1$, we can directly conclude that $-1\le x,y\le 1$.
But this doesn't help much to find a relationship between $\Re(\alpha)$ and $\Im(\alpha)$.
How to proceed?
Let $w=\frac{z+1}{z-3}\implies z=\frac{3w+1}{w-1}$. Then, the given $|z|^2=1$ leads to
$$\frac{3w+1}{w-1}\frac{3\bar w+1}{\bar w-1}=1\implies |w|^2+\frac12(w+\bar w)=0$$
which is just
$$|w+\frac12|^2=\frac1{2^2}$$
Thus, the locus is a circle with center at $-\frac12$ and radius $\frac12$.