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2- Last year the closing balance of Carl's account for June was less than $2,675 ### GMAT/MBA Expert Jim@StratusPrep MBA Admissions Consultant Joined 11 Nov 2011 Posted: 2278 messages Followed by: 265 members Upvotes: 660 GMAT Score: 770 Mon Nov 16, 2015 10:45 am You will find this pdf helpful: Attachments This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user. _________________ GMAT Answers provides a world class adaptive learning platform. -- Push button course navigation to simplify planning -- Daily assignments to fit your exam timeline -- Organized review that is tailored based on your abiility -- 1,000s of unique GMAT questions -- 100s of handwritten 'digital flip books' for OG questions -- 100% Free Trial and less than$20 per month after.
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### GMAT/MBA Expert

Brent@GMATPrepNow GMAT Instructor
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Mon Nov 16, 2015 7:36 am
Quote:
Beginning in January of last year, Carl made deposits of $120 into his account on the 15th of each month for several consecutive months and then made withdrawals of$50 from the account on the 15th of each of the remaining months of last year. There were no other transactions in the account last year. If the closing balance of Carlâ€™s account for May of last year was $2,600, what was the range of the monthly closing balances of Carlâ€™s account last year? (1) Last year the closing balance of Carlâ€™s account for April was less than$2,625
(2) Last year the closing balance of Carlâ€™s account for June was less than $2,675 Target question: What was the range of the monthly closing balances of Carlâ€™s account last year? Given: The closing balance of Carlâ€™s account for May of last year was$2,600

IMPORTANT: To answer the target question we need only determine which month Carl STARTED withdrawing money.
For example, if he started withdrawing money on March 15, we could use the fact that he had $2600 at the end of May to determine how much he had in the bank every month of the year, and thus determine the range of closing balances. Notice that, since this is a Data Sufficiency, we need not calculate the actual range. We need only determine which month the deposits stopped and the withdrawals started. So, we can rephrase our target question as . . . REPHRASED target question: In which month did Carl start withdrawing$50?

Statement 1: Last year the closing balance of Carlâ€™s account for April was less than $2,625 Let's examine two cases: case a: In May, Carl DEPOSITED$120. So, balance at end of April = $2600 -$120 = $2480. This is possible, since we're told that the balance is less than$2625
case b: In May, Carl WITHDREW $50. So, balance at end of April =$2600 + $50 =$2650. This is NOT possible, since we're told that the balance is less than $2625 So, Carl definitely deposited$120 in May (and deposited $120 in April, March, Feb, and Jan). However, we don't know the first month that Carl started withdrawing$50
Since we cannot answer the REPHRASED target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: Last year the closing balance of Carlâ€™s account for June was less than $2,675. Let's examine two cases: case a: In June, Carl DEPOSITED$120. So, balance at end of June = $2600 +$120 = $2720. This is NOT possible, since we're told that the balance is less than$2675
case b: In June, Carl WITHDREW $50. So, balance at end of June =$2600 - $50 =$2550. This is possible, since we're told that the balance is less than $2675 So, Carl definitely withdrew$50 in June, which means he also withdrew $50 in July, August, Sept, etc. However, we don't know the FIRST month that Carl started withdrawing$50
Since we cannot answer the REPHRASED target question with certainty, statement 2 is NOT SUFFICIENT

Statements 1 and 2 combined
Statement 1 tells us that Carl deposited $120 in May. Statement 2 tells us that Carl withdrew$50 in June.
So, June was the first month that Carl started withdrawing $50 Since we can answer the REPHRASED target question with certainty, the combined statements are SUFFICIENT Answer = C Cheers, Brent _________________ Brent Hanneson â€“ Founder of GMATPrepNow.com Use our video course along with Check out the online reviews of our course Come see all of our free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### GMAT/MBA Expert GMATGuruNY GMAT Instructor Joined 25 May 2010 Posted: 13767 messages Followed by: 1802 members Upvotes: 13060 GMAT Score: 790 Mon Nov 16, 2015 6:15 am Quote: Beginning in January of last year, Carl made deposits of$120 into his account on the 15th of each month
for several consecutive months and then made
withdrawals of $50 from the account on the 15th of each of the remaining months of last year. There were no other transactions in the account last year. If the closing balance of Carlâ€™s account for May of last year was$2,600, what was the range of the monthly
closing balances of Carlâ€™s account last year?

(1) Last year the closing balance of Carlâ€™s account for April was less than $2,625. (2) Last year the closing balance of Carlâ€™s account for June was less than$2,675.
May = 2600.

Statement 1: Last year the closing balance of Carlâ€™s account
for April was less than $2,625. If 120 was deposited in May, then April = 2600-120 = 2480. If 50 was withdrawn in May, then April = 2600+50 = 2650. Since April < 2625, we know that a deposit of 120 was made in May, implying that 120 was deposited every month January through at least May. Thus, we can determine the balance of every month January - April: April = 2480, March = 2480-120 = 2360, etc. No information about June - December. Insufficient. Statement 2: Last year the closing balance of Carlâ€™s account for June was less than$2,675.

If 120 was deposited in June, then June = 2600+120 = 2720.
If 50 was withdrawn in June, then June = 2600-50 = 2550.
Since June < 2675, we know that a withdrawal of 50 was made in June, implying that 50 was withdrawn every month June - December.
Thus, we can determine the balance of every month June - December:
June = 2550, July = 2550-50 = 2500, etc.
No information about January - April.
Insufficient.

Statements 1 and 2 combined:
Statement 1 tells us the closing balances January - April.
The question stem tells us the closing balance in May.
Statement 2 tells us the closing balances June - December.
Combining the information above, we can determine the closing balance of every month and determine the range for the whole year.
Sufficient.

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