A certain bank charges a maintenance fee on a standard checking account each month that the balance falls below $1000 at any time during the month. Did the bank
charge a maintenance fee on Sue's standard checking account last month?
1) At the beginning of last month, Sue's account balance was $1500
2) During last month, a total of $2000 was withdrawn from Sue's checking account.
GMAT Prep DS
This topic has expert replies
- manpsingh87
- Master | Next Rank: 500 Posts
- Posts: 436
- Joined: Tue Feb 08, 2011 3:07 am
- Thanked: 72 times
- Followed by:6 members
1) now here three cases are possible i'm assuming she didn't add any additional money to her account(although we can assume that she had deposited the money in her account during the period and can follow the same following cases as well;)naveenhv wrote:A certain bank charges a maintenance fee on a standard checking account each month that the balance falls below $1000 at any time during the month. Did the bank
charge a maintenance fee on Sue's standard checking account last month?
1) At the beginning of last month, Sue's account balance was $1500
2) During last month, a total of $2000 was withdrawn from Sue's checking account.
case 1) sue draws the amount from her account and amount drawn was more than 500 say 550; then balance in her account goes below the 1000 level, therefore she will pay the maintenance fee;
case 2) she draws the amount from her account and amount drawn was less than 200 say 300; then balance in her account won't go below the 1000 level, therefore she will not pay any maintenance fee;
case 3) she didn't carry out any transaction during the period, i.e. she didn't draw any thing than here balance would be 1500 and therefore she won't pay any maintenance fee;
therefore 1 alone is not sufficient to answer the question.
2)initial balance 1500; now suppose she deposits $2500 to her account and withdraws 2000; then her outstanding balance would be 2000; therefore she won't pay any maintenance fee;
now suppose she deposits $800 to her account and withdraws 2000; in this case her outstanding balance would be 300; therefore she will pay maintenance fee;
hence 2 alone is also not sufficient to answer the question.
Even after combining the above two information we won't be able to draw any conclusion..
hence answer should be E
O Excellence... my search for you is on... you can be far.. but not beyond my reach!
-
- Legendary Member
- Posts: 1112
- Joined: Sat Feb 26, 2011 11:16 am
- Thanked: 77 times
- Followed by:49 members
IMO Enaveenhv wrote:A certain bank charges a maintenance fee on a standard checking account each month that the balance falls below $1000 at any time during the month. Did the bank
charge a maintenance fee on Sue's standard checking account last month?
1) At the beginning of last month, Sue's account balance was $1500
2) During last month, a total of $2000 was withdrawn from Sue's checking account.
Looks like a CR question hehe...
So many factors are missing:
1) may be someone or Sue herself deposited some amount in the bank
2) the rate of monthly interest is 200% so at the end of the month, Sue has $4500 in her account
- Anaira Mitch
- Master | Next Rank: 500 Posts
- Posts: 235
- Joined: Wed Oct 26, 2016 9:21 pm
- Thanked: 3 times
- Followed by:5 members
Statement 1 only gives the information about the account balance at the start of the month. Insufficient.
Statement 2 does not tell us anything about the account balance after the money was withdrawn. Insufficient.
Statement 1 + Statement 2 :-
We have no information about deposits. Furthermore, we know that there definitely are deposits, since the customer's withdrawals for the month are greater than her initial balance at the start of the month.
Insufficient.
Hence E.
Statement 2 does not tell us anything about the account balance after the money was withdrawn. Insufficient.
Statement 1 + Statement 2 :-
We have no information about deposits. Furthermore, we know that there definitely are deposits, since the customer's withdrawals for the month are greater than her initial balance at the start of the month.
Insufficient.
Hence E.
GMAT/MBA Expert
- Jay@ManhattanReview
- GMAT Instructor
- Posts: 3008
- Joined: Mon Aug 22, 2016 6:19 am
- Location: Grand Central / New York
- Thanked: 470 times
- Followed by:34 members
Hi naveenhv,wrote:A certain bank charges a maintenance fee on a standard checking account each month that the balance falls below $1000 at any time during the month. Did the bank charge a maintenance fee on Sue's standard checking account last month?
1) At the beginning of last month, Sue's account balance was $1500.
2) During last month, a total of $2000 was withdrawn from Sue's checking account.
In DS questions we must be sure whether the statement(s) have sufficient information to conclude.
Let us take each statement one by one.
S1: At the beginning of last month, Sue's account balance was $1500.
Though at the beginning of last month, Sue's account balance was $1500, and if she did withdraw any sum during the month, the answer would be NO. However, if she withdrew a sum such that the balance falls below $1000, the answer is YES. Insufficient.
S2: During last month, a total of $2000 was withdrawn from Sue's checking account.
We know nothing about Sues account balance. It may or may not fall below $1000. Insufficient.
S1 & S2:
Even after combining the statements, we cannot get a new scenario.
The correct answer: E
Free ebook: Manhattan Review GMAT Quantitative Question Bank Guide
Hope this helps!
-Jay
_________________
Manhattan Review GMAT Prep
Locations: New York | Singapore | Doha | Lausanne | and many more...
Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.
GMAT/MBA Expert
- Scott@TargetTestPrep
- GMAT Instructor
- Posts: 7223
- Joined: Sat Apr 25, 2015 10:56 am
- Location: Los Angeles, CA
- Thanked: 43 times
- Followed by:29 members
We are given that a bank charges a fee for every month a checking account falls below $1,000 at any point. We must determine whether Sue was charged that fee last month.naveenhv wrote:A certain bank charges a maintenance fee on a standard checking account each month that the balance falls below $1000 at any time during the month. Did the bank
charge a maintenance fee on Sue's standard checking account last month?
1) At the beginning of last month, Sue's account balance was $1500
2) During last month, a total of $2000 was withdrawn from Sue's checking account.
Statement One Alone:
At the beginning of last month, Sue's account balance was $1500.
Since we do not know whether Sue withdrew any money during the month, we cannot determine whether she was charged the maintenance fee. Statement one alone is not sufficient to answer the question.
Statement Two Alone:
During last month, a total of $2000 was withdrawn from Sue's checking account.
Although we know that $2,000 was withdrawn from the checking account, without knowing the starting balance or what was deposited, we cannot determine whether the balance was ever under $1,000 during the month. Statement two alone is not sufficient to answer the question.
Statements One and Two Together:
Using the statements together, we still cannot determine whether her account fell under $1,000. We know that the account started at $1,500 and that she withdrew $2,000. However, without knowing whether she made any deposits, there is no way to know whether the account balance fell under $1,000 at any time during the month.
Answer: E
Scott Woodbury-Stewart
Founder and CEO
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews