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Credit card account

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Manager
Manager
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Status: Sick of Refreshing Email
Joined: 10 Mar 2011
Posts: 100
Location: United States (TX)
Concentration: Finance, Economics
GMAT 1: 690 Q48 V35
GMAT 2: 690 Q50 V33
GMAT 3: 730 Q50 V39
GPA: 3.6
WE: Information Technology (Consulting)
Followers: 1

Kudos [?]: 27 [0], given: 3

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Credit card account [#permalink] New post 18 Aug 2011, 14:55
On Jane’s credit card account, the average daily balance for 30 day billing cycle is the average 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 amts were added to or subtracted from the account during the billing cycle, what was the average daily balance on the Jan’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.


What does this imply -

"the average daily balance for 30 day billing cycle is the average of the daily balances at the end of each of the 30 days"
e.g.
Day1 - 100$ ballance.
Day2 - I spend 20$ so balance is 90$
Day3 - I spend another 40$ so the balance is (100+90+50)/3

Thanks
Sumeet
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Thanks
Sumeet
www.midasreturns.wordpress.com

Manager
Manager
avatar
Status: Sick of Refreshing Email
Joined: 10 Mar 2011
Posts: 100
Location: United States (TX)
Concentration: Finance, Economics
GMAT 1: 690 Q48 V35
GMAT 2: 690 Q50 V33
GMAT 3: 730 Q50 V39
GPA: 3.6
WE: Information Technology (Consulting)
Followers: 1

Kudos [?]: 27 [0], given: 3

GMAT ToolKit User Reviews Badge
Re: Credit card account [#permalink] New post 18 Aug 2011, 14:57
I am sorry - I thought I was in DS forum.

Can you please move it Mr. Morderator?
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Sumeet
www.midasreturns.wordpress.com

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Re: Credit card account [#permalink] New post 18 Aug 2011, 21:57
Expert's post
vatsas wrote:
On Jane’s credit card account, the average daily balance for 30 day billing cycle is the average 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 amts were added to or subtracted from the account during the billing cycle, what was the average daily balance on the Jan’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.


What does this imply -

"the average daily balance for 30 day billing cycle is the average of the daily balances at the end of each of the 30 days"
e.g.
Day1 - 100$ ballance.
Day2 - I spend 20$ so balance is 90$
Day3 - I spend another 40$ so the balance is (100+90+50)/3

Thanks
Sumeet



You are right. The billing cycle has an amount associated with it called the 'Average daily balance'. This is calculated by averaging the ending daily balance of each of the 30 days.
Ending balance on Day 1: 100
Ending balance on Day 2: 80
Ending balance on Day 3: 40
Ending balance on Day 4: 100
.
.
.
Ending balance on Day 30: 70

Average daily balance for the cycle = (100+80+40+....+70)/30

Find the solution here:
on-the-janes-credit-card-106680.html#p843954
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Looking for modern floor lamps........ [#permalink] New post 19 Aug 2011, 08:41
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Looking for modern floor lamps........   [#permalink] 19 Aug 2011, 08:41
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