-
bynddrvn
- Senior | Next Rank: 100 Posts
- Posts: 33
- Joined: Thu Apr 16, 2009 6:58 am
- Location: Boston
- Thanked: 2 times
I don't understand how to simplify this question.
161. 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 Carl's account for May of last year was $2,600, what was the range of the monthly closing balances of Carl's account last year?
1) Last year the closing balance of Carl's account for April was less than $2,625.
2) Last year the closing balance of Carl's account for June was less than $2,675.
The official answer is "C" but I don't quite understand why. I picked "B" because in the question stem we know that there is $2,600 in the account as of May, if Carl added $120 in June the total would have to be at least $2,720. From this we know that Carl was drawing down the account at this time. So he added $120 into the account until May, then started drawing down the account by $50 increments. I couldn't come up with a scenario where this wouldn't work.
161. 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 Carl's account for May of last year was $2,600, what was the range of the monthly closing balances of Carl's account last year?
1) Last year the closing balance of Carl's account for April was less than $2,625.
2) Last year the closing balance of Carl's account for June was less than $2,675.
The official answer is "C" but I don't quite understand why. I picked "B" because in the question stem we know that there is $2,600 in the account as of May, if Carl added $120 in June the total would have to be at least $2,720. From this we know that Carl was drawing down the account at this time. So he added $120 into the account until May, then started drawing down the account by $50 increments. I couldn't come up with a scenario where this wouldn't work.
