Q. On Jane's credit card account, the average daily balance for a 30-day billing cycle is average (arithmetic mean) of the daily balances at the end of the 30 days. At the beginning of a certain 30-day billing cycle, Jane's credit card account had a balance of $600. Jane made a payment of $300 on the account during the billing cycle. If no other amounts were added to or subtracted from the account during the billing cycle, what was average daily balance on Jane's account for the billing cycle?
(1) Jane's payment was credited on the 21st day of the billing cycle.
(2) The average daily balance through the 25th day of the billing cycle was $540.
IMO - A, am i correct?
Credit card problem!
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IMO its D
statement 1:
The $300 payment was credited on 21st day of the billing cycle. So we can find the average as
(600*21+300*9 )/30=daily average
Hence statement 1 is sufficient
Statement 2:
The average until 25 day was $540.
Since average is less than 600 and much more than 300 it means that payment has been applied but recently.
We can assume that on day x the payment was applied.
Hence,
600*x+300(25-x)=25*540
x=20.
Hence on day 20 the $300 payment was applied to the account.
So its easier now to find the average balance at the end of 30 day billing cycle.
So statement 2 is sufficient.
Hence D.
Thanks !
statement 1:
The $300 payment was credited on 21st day of the billing cycle. So we can find the average as
(600*21+300*9 )/30=daily average
Hence statement 1 is sufficient
Statement 2:
The average until 25 day was $540.
Since average is less than 600 and much more than 300 it means that payment has been applied but recently.
We can assume that on day x the payment was applied.
Hence,
600*x+300(25-x)=25*540
x=20.
Hence on day 20 the $300 payment was applied to the account.
So its easier now to find the average balance at the end of 30 day billing cycle.
So statement 2 is sufficient.
Hence D.
Thanks !
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I posted a solution here:
https://www.beatthegmat.com/arithmetic-mean-t82854.html
The posted solution requires almost no math.
https://www.beatthegmat.com/arithmetic-mean-t82854.html
The posted solution requires almost no math.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
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Student Review #3