Stuck in one problem.Please help me understand it
Raymond borrowed $450 at 0% interest.If he pays back .5% of the total amount every 7 days,beginning exactly 7 days after the loan was disbursed, and has thus far paid back $18, with the most recent payment made today,how many days ago did he borrow the money?
(A) 6
(B) 8
(C) 25
(D) 42
(E) 56
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
Precent Problen
This topic has expert replies
-
Akashdeep13
- Newbie | Next Rank: 10 Posts
- Posts: 9
- Joined: Tue Mar 03, 2015 10:37 pm
- Thanked: 1 times
GMAT/MBA Expert
-
[email protected]
- Elite Legendary Member
- Posts: 10392
- Joined: Sun Jun 23, 2013 6:38 pm
- Location: Palo Alto, CA
- Thanked: 2867 times
- Followed by:511 members
- GMAT Score:800
Hi Akashdeep13,
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
GMAT/MBA Expert
-
Brent@GMATPrepNow
- GMAT Instructor
- Posts: 16207
- Joined: Mon Dec 08, 2008 6:26 pm
- Location: Vancouver, BC
- Thanked: 5254 times
- Followed by:1268 members
- GMAT Score:770
Another approach:Akashdeep13 wrote:Stuck in one problem.Please help me understand it
Raymond borrowed $450 at 0% interest.If he pays back .5% of the total amount every 7 days,beginning exactly 7 days after the loan was disbursed, and has thus far paid back $18, with the most recent payment made today,how many days ago did he borrow the money?
(A) 6
(B) 8
(C) 25
(D) 42
(E) 56
1% of $450 = $4.50
So, 0.5% of $450 = $2.25
So, Raymond pays $2.25 back each week.
Raymond has paid a total of $18 so far.
$18/$2.25 = 8
So, there have been 8 payments so far.
(8)(7 days) = 56 days
Answer: E
Brent Hanneson - Creator of GMATPrepNow.com
-
Akashdeep13
- Newbie | Next Rank: 10 Posts
- Posts: 9
- Joined: Tue Mar 03, 2015 10:37 pm
- Thanked: 1 times
[email protected] wrote:Hi Akashdeep13,
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
I have one doubt.. he started to pay after 7 days.. so shouldn't the days 56+7?
-
DavidG@VeritasPrep
- Legendary Member
- Posts: 2663
- Joined: Wed Jan 14, 2015 8:25 am
- Location: Boston, MA
- Thanked: 1153 times
- Followed by:128 members
- GMAT Score:770
Think of it this way:Akashdeep13 wrote:[email protected] wrote:Hi Akashdeep13,
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
I have one doubt.. he started to pay after 7 days.. so shouldn't the days 56+7?
Payment 1 happens on day 7.
Payment 2 happens on day 14 (or 2*7)
Payment 8 happens on day 56 (or 8*7)
-
Akashdeep13
- Newbie | Next Rank: 10 Posts
- Posts: 9
- Joined: Tue Mar 03, 2015 10:37 pm
- Thanked: 1 times
DavidG@VeritasPrep wrote:Think of it this way:Akashdeep13 wrote:[email protected] wrote:Hi Akashdeep13,
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
I have one doubt.. he started to pay after 7 days.. so shouldn't the days 56+7?
Payment 1 happens on day 7.
Payment 2 happens on day 14 (or 2*7)
Payment 8 happens on day 56 (or 8*7)
I understood what you said, but my doubt was that he started to pay after 7 days of amount disbursed. After 7 days, he started to pay every 7 days. So shouldn't the first payment after 14 days?
-
DavidG@VeritasPrep
- Legendary Member
- Posts: 2663
- Joined: Wed Jan 14, 2015 8:25 am
- Location: Boston, MA
- Thanked: 1153 times
- Followed by:128 members
- GMAT Score:770
I see. This could have been worded a little more clearly. When we see If he pays back .5% of the total amount every 7 days,beginning exactly 7 days after the loan was disbursed what it means is If he pays back .5% of the total amount every 7 days, and the first payment occurs 7 days after the loan was disbursedAkashdeep13 wrote:DavidG@VeritasPrep wrote:Think of it this way:Akashdeep13 wrote:[email protected] wrote:Hi Akashdeep13,
We're told that Raymond pays 1/2% of $450 every 7 days and that he's paid a total of $18 so far.
1% of $450 = $4.50
4% of $450 = $18
That 4% has been paid in 1/2% increments (one increment every 7 days), so there have been 8 payments so far.
(8)(7 days) = 56 days
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
I have one doubt.. he started to pay after 7 days.. so shouldn't the days 56+7?
Payment 1 happens on day 7.
Payment 2 happens on day 14 (or 2*7)
Payment 8 happens on day 56 (or 8*7)
I understood what you said, but my doubt was that he started to pay after 7 days of amount disbursed. After 7 days, he started to pay every 7 days. So shouldn't the first payment after 14 days?
GMAT/MBA Expert
-
[email protected]
- Elite Legendary Member
- Posts: 10392
- Joined: Sun Jun 23, 2013 6:38 pm
- Location: Palo Alto, CA
- Thanked: 2867 times
- Followed by:511 members
- GMAT Score:800
Hi Akashdeep13,
When working through GMAT questions, the answer choices sometimes provide helpful 'clues' as to how you can go about solving the given question. In that same way, they can sometimes help you to properly interpret what the question is saying.
You bring up an interesting interpretation of the wording of the prompt, BUT since THAT answer (re: 63) is not among the 5 choices, that interpretation CANNOT be correct.
GMAT assassins aren't born, they're made,
Rich
When working through GMAT questions, the answer choices sometimes provide helpful 'clues' as to how you can go about solving the given question. In that same way, they can sometimes help you to properly interpret what the question is saying.
You bring up an interesting interpretation of the wording of the prompt, BUT since THAT answer (re: 63) is not among the 5 choices, that interpretation CANNOT be correct.
GMAT assassins aren't born, they're made,
Rich
-
Matt@VeritasPrep
- GMAT Instructor
- Posts: 2630
- Joined: Wed Sep 12, 2012 3:32 pm
- Location: East Bay all the way
- Thanked: 625 times
- Followed by:119 members
- GMAT Score:780
When in doubt, use the common sense interpretation. "Beginning" here should imply when the first payment was made, not when the seven day window initiates. It would be the same with a 0% interest credit card (e.g. payments "begin" 12 months after you receive the card).Akashdeep13 wrote:I understood what you said, but my doubt was that he started to pay after 7 days of amount disbursed. After 7 days, he started to pay every 7 days. So shouldn't the first payment after 14 days?
