Easy one - got doubt with wording of the question

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Sally has a gold credit card with a certain spending limit, and a platinum card with twice the spending limit of the gold card. Currently, she has a balance on her gold card that is 1/3 of the spending limit on that card, and she has a balance on her platinum card that is 1/5 of the spending limit on that card. If Sally transfers the entire balance on her gold card to her platinum card, what portion of her limit on the platinum card will remain unspent?

11/30

29/60

17/30


19/30


11/15

[spoiler]the ques asks about the limit unspent ..doent that mean the balance .??[/spoiler]
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by truplayer256 » Sun Aug 16, 2009 2:16 pm
Yes, you're correct.

x=Spending limit on gold card.

2x= Spending limit on platinum card.

Balance on gold card= x/3

Balance on platinum card= 2x/5

2x/5+x/3=11x/15= Balance on platinum card

Portion of limit on platinum card that will remain unspent= 11x/15/(2x)=11/30.

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by kaulnikhil » Sun Aug 16, 2009 10:37 pm
but the answer given by Manhattan is 19/30 that is( 1-11/30)

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by ash_maverick » Wed Aug 26, 2009 3:06 am
I am shocked to see the answer as 19/30.
From my understanding the answer should be 11/30 as this is the amount that left unspent on the PC.

Can somebody throw light on this as i don;t see much problem in understanding the language of the question.

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by shanrizvi » Wed Aug 26, 2009 6:13 am
The answer is definitely 19/30.

P = Spending limit of the Platinum card
G = Spending limit of the Gold card

P=2G or G=P/2

Note: We are talking about credit cards here. Hence, when we use the word balance, it has to be the "credit" balance on the card i.e. the amount spent so far. In other words, the amount of the spending limit that has been consumed.

Balance(G)=G/3
Balance(P)=P/5

G=P/2

Balance(G)=1/3.P/2

Balance(P)=P/5+P/6=
=> Bal(P) = 11P/30 (Proportion spent)

Unspent = 1-(11/30) = 19/30

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by mehravikas » Wed Aug 26, 2009 12:44 pm
I agree with @ash_maverick if you have a balance on your card as $100 then that amount should be counted as the unspent amount.

Unless the balance on the card means the amount that you have spent. If that were true, then how can one transfer the spent amount (i.e. the balance) from one card to another card.

ash_maverick wrote:I am shocked to see the answer as 19/30.
From my understanding the answer should be 11/30 as this is the amount that left unspent on the PC.

Can somebody throw light on this as i don;t see much problem in understanding the language of the question.

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by life is a test » Wed Aug 26, 2009 8:10 pm
mehravikas wrote:I agree with @ash_maverick if you have a balance on your card as $100 then that amount should be counted as the unspent amount.

Unless the balance on the card means the amount that you have spent. If that were true, then how can one transfer the spent amount (i.e. the balance) from one card to another card.

ash_maverick wrote:I am shocked to see the answer as 19/30.
From my understanding the answer should be 11/30 as this is the amount that left unspent on the PC.

Can somebody throw light on this as i don;t see much problem in understanding the language of the question.
I agree the q assumes that ppl will know the meaning of balance on a credit card which is the opposite of the balance definition for a bank account for example. In anycase just fyi, the balance transfer is a common feature of credit cards allowing the debt to be transferred to another credit card which may have a lower int rate - you may have seen advertisement for cred cards stating 0% on balance transfers, I.e. You will not be charged by the credit card comp for transferring the debt. Hope that helps.

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by mehravikas » Thu Aug 27, 2009 2:16 am
Agreed 100% correct.

Lets take an example here - Assume each card has 7500$ limit.

Card A - Amount due - 7500$ - balance that can be spent more will be 0$
Card B - Amount due - 0$ - amount available for balance transfer 7500$

Card C - Amount due - 100$ - amount available for balance transfer 7400$


We transfer money card b to card a.

Card A - Amount due - 0$ - balance that can be spent more will be 7500$
Card B - Amount due - 7500$ - amount available for balance transfer 0$


We transfer money card c to card a. Note we can transfer only 7400$ not 7500$ because i have used 100$ in some other expenses.

Card A - Amount due - 100$ - balance that can be spent more will be 7400$
Card B - Amount due - 7500$ - amount available for balance transfer 0$

life is a test wrote:
mehravikas wrote:I agree with @ash_maverick if you have a balance on your card as $100 then that amount should be counted as the unspent amount.

Unless the balance on the card means the amount that you have spent. If that were true, then how can one transfer the spent amount (i.e. the balance) from one card to another card.

ash_maverick wrote:I am shocked to see the answer as 19/30.
From my understanding the answer should be 11/30 as this is the amount that left unspent on the PC.

Can somebody throw light on this as i don;t see much problem in understanding the language of the question.
I agree the q assumes that ppl will know the meaning of balance on a credit card which is the opposite of the balance definition for a bank account for example. In anycase just fyi, the balance transfer is a common feature of credit cards allowing the debt to be transferred to another credit card which may have a lower int rate - you may have seen advertisement for cred cards stating 0% on balance transfers, I.e. You will not be charged by the credit card comp for transferring the debt. Hope that helps.

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by heshamelaziry » Thu Aug 27, 2009 11:38 pm
Assume the balance on the Gold card is 15 and the balance on the Platinum card is 30. i/3 of Gold card is 5 and 1/5 of Platinum is 6. 6+5 = 11. portion available is 19/30

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by mehravikas » Fri Aug 28, 2009 4:44 am
11/30 should be the balance now...how can you say that 19/30 would be the unspent amount?????
heshamelaziry wrote:Assume the balance on the Gold card is 15 and the balance on the Platinum card is 30. i/3 of Gold card is 5 and 1/5 of Platinum is 6. 6+5 = 11. portion available is 19/30

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by heshamelaziry » Fri Aug 28, 2009 9:27 am
mehravikas wrote:11/30 should be the balance now...how can you say that 19/30 would be the unspent amount?????
heshamelaziry wrote:Assume the balance on the Gold card is 15 and the balance on the Platinum card is 30. i/3 of Gold card is 5 and 1/5 of Platinum is 6. 6+5 = 11. portion available is 19/30
Available = unspent amount