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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