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Credit card

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by vaibhav.iit2002 » Sun Oct 04, 2009 4:29 am
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 fraction of her limit on the platinum card will remain unspent?

11/30, 29/60, 17/30, 19/30, 11/15

Please let me know the what does the ques. exactly mean by "remain unspent"?
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by catchyblues » Sun Oct 04, 2009 6:31 am
The "remain unspent" is the balance on both the cards...

The answer to this Q is 11/30
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Re: Credit card

by umaa » Sun Oct 04, 2009 6:32 am
vaibhav.iit2002 wrote: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 fraction of her limit on the platinum card will remain unspent?

11/30, 29/60, 17/30, 19/30, 11/15

Please let me know the what does the ques. exactly mean by "remain unspent"?
IMO A.

Remain unspent talks about the remaining balance.

Lets use the plug in method,

Gold credit card has a particular spending limit, lets take it as 30

G = 30

P = 2G = 60

G hhas 1/3 balance in its spending limit, which is 30/3 = 10

P has 1/5th of its spending limit = 60/5 = 12

Add both: 10+ 12 = 22

The question is, what fraction of her limit on the platinum card will remain unspent??

Total balance = 22
Platinum spending limit = 60.

So, the answer should be 22/60 = 11/30

OA pls
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by vaibhav.iit2002 » Sun Oct 04, 2009 6:35 am
Yup ans. should be 11/30

but the solution says its 1-11/30=19/30 !!

OA is D. :(
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by umaa » Sun Oct 04, 2009 6:37 am
I don't think the answer is D. What is the source of the question?
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by vaibhav.iit2002 » Sun Oct 04, 2009 6:43 am
Manhattan Tests CAT-3
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by umaa » Sun Oct 04, 2009 6:47 am
I don't think thats the right answer. But Lets wait for others' replies.
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by okigbo » Mon Oct 05, 2009 10:22 pm
I got D too. I read unspent as the balance remaining - if your credit card limit is 1500 and you spent 500, the unspent portion of your limit is 1000.
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by vaibhav.iit2002 » Tue Oct 06, 2009 12:47 am
okigbo wrote:I got D too. I read unspent as the balance remaining - if your credit card limit is 1500 and you spent 500, the unspent portion of your limit is 1000.
That's why ans. should be 11/30 as balance=11/30
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by Stuart@KaplanGMAT » Tue Oct 06, 2009 2:45 pm
It's definitely 1 - 11/30.

The question asks:

"what fraction of her limit on the platinum card will remain unspent?"

The calculations that were done indicated how much of the balance had been used up, so we need to take 1 - that amount to find the amount unspent.

Let's look at a similarly worded question:

"Bob started the day with $50. During the day, he bought a CD for $10 and a DVD for $20. If Bob didn't spend any other money, at the end of the day what fraction of the money he started with remains unspent?"

Bob spent a total of 10 + 20 = 30 dollars, which is 3/5 of his starting money. However, we want the fraction that remains unspent, so we need to take:

1 - 3/5 = 2/5
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by umaa » Tue Oct 06, 2009 2:54 pm
Stuart, Please help me understand the question. It clearly says BALANCE. Doesn't it means thats the money unspent?
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by Stuart@KaplanGMAT » Tue Oct 06, 2009 3:03 pm
umaa wrote:Stuart, Please help me understand the question. It clearly says BALANCE. Doesn't it means thats the money unspent?
No - when we're talking about a credit card balance, we're talking about the amount that's owed.

For example: If I charged $20 for shoes and $50 for a suit (hey, I only buy the best clothing), my credit card balance would be $70.

If you have a credit card and get monthly statements, the balance is always the amount owing (at least in North America, the centre of the GMAT universe).
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by umaa » Tue Oct 06, 2009 3:06 pm
OMG! My basic understanding is wrong!! Thanks for the explanation :)
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by vaibhav.iit2002 » Tue Oct 06, 2009 7:59 pm
Stuart Kovinsky wrote:
umaa wrote:Stuart, Please help me understand the question. It clearly says BALANCE. Doesn't it means thats the money unspent?
No - when we're talking about a credit card balance, we're talking about the amount that's owed.

For example: If I charged $20 for shoes and $50 for a suit (hey, I only buy the best clothing), my credit card balance would be $70.

If you have a credit card and get monthly statements, the balance is always the amount owing (at least in North America, the centre of the GMAT universe).
Thanks a lot Stuart. I thought balance mean the amount unspent. Perhaps I could have done it correct if it were a ques. of debit card :)
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