BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATBootcamp Starts Sep 28
Chris Peckover, Target Test Prep GMAT expert
LIVE ONLINE BOOTCAMP

Live Online Bootcamp Class with Top GMAT Expert Chris Peckover

15 live classes from Sep 28, 2026

Schedule
Mon to Fri · 7:00 to 10:00 PM ET
Included
Live classes + 6 months of TTP OnDemand
  • Boost your GMAT score in less than one month in a live online class
  • 6 months access to TTP OnDemand video courses included
View bootcamp & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

On Jane's credit card account, the average daily balance for the 30-day billing cycle is the average (arithmetic mean)

Expert replies
by VJesus12 » Thu Mar 18, 2021 12:32 pm

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty—

On Jane's credit card account, the average daily balance for the 30-day billing cycle is the average (arithmetic mean) of the daily balances at the end of each of the 30 days. At the beginning of a certain 30-day billing cycle, Jane's credit card account had a balance of $600. Jane made a payment of $300 on the account during the billing cycle. If no other amounts were added to or subtracted from the account during the billing cycle, what was the average daily balance on Jane's account for the billing cycle?

(1) Jane's payment was credited on the 21st day of the billing cycle.

(2) The average daily balance through the 25th day of the billing cycle was $540.

Answer: D

Source: GMAT Prep
Join the discussion
Source: — Data Sufficiency |

$$Average\ balance\ at\ the\ end\ of\ 30\ days=\frac{sum\ of\ daily\ balance}{30\ days}$$
Jane's credit card account had a balance of $600, and Jand made a payment of $300 during the cycle. So, we can say the balance on the credit card account is either $600 or $300 and once it decreases to $300, it stays at $300 for the rest of the month.

For the sum of the daily balance, we have to figure out when Jane made the $300 payment to estimate the sum of daily balances.

Statement 1: Jane's payment was credited on the 21st day of the billing cycle.
The account had a $600 balance for 20 days starting from the 21 daily balance became $300 for the next 30 days.
Sum of daily balance = (20 * 600) + (10 * 300)
= 12000 + 3000 = 15,000
$$Average\ balance\ at\ the\ end\ of\ 30\ days=\frac{15000}{30}=500$$
Statement 1 is SUFFICIENT

Statement 2: The average daily balance through the 25th day of the billing cycle was $540.
Let the number of days for $600 balance = x
no. of days for $300 balance = 25 - x
$$Average\ for\ 25\ days=\frac{\left(x\cdot600\right)+\left[\left(25-x\right)\cdot300\right]}{25}$$
$$$540=\frac{600x-300x+7500}{25}$$
13500 = 300x + 7500
300x = 6000
x = 6000/300 = 20 days
There will be 20 days for $600 and 10 days for $300 balance in the 30 days billing cycle.
Sum of daily balance = (20 * 600) + (10 * 300) = 15000
Average for 30 days = 15000/30 = 500
Statement 2 is SUFFICIENT.

Since each statement alone is SUFFICIENT, option D is the correct answer.
Join the discussion