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Re: If one of Jean's credit cards charges more than 2 percent [#permalink]
mitmat wrote:
MacFauz wrote:
I guess the question is very poorly worded.

We are being asked for the least possible amount for Jean's balance. Looking at the answer choices, the least number there is 357. Lets see if it is valid.

Let "x" be the interest rate

357 * x > 17.85. So x > 0.05 ie 5% which does not conflict with any part of the question. So the answer could certainly be A as well. In fact the actual minimum value could be any number greater than 0.

Maybe if the question was to find the maximum possible amount, it would make more sense and the answer to which is < 900.


Thanks MacFauz, I thought so, on the same line. Since the source was princeton review, I gave princeton review the benefit of doubt and I reached this predicament.
But MacFauz, I beg to disagree with you on your statement:" it would make more sense and the answer to which is < 900". I think if the question was to find the maximum possible balance, it should have been any value just below 892.50$ and that would be C which is 892$.
The detailed calculation would be: Balance*Interest<17.85 where Interest > 2% and so putting 2% to find the baseline of B, we get B<829.50$. And from the main equation: Balance<1785/interest, when interest increases more, the max possible value for balance dips further.


Yes. To say the exact values is 1785/0.2 which would be 892.5. I was just throwing out an approximate value to illustrate the point.
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Re: If one of Jean's credit cards charges more than 2 percent [#permalink]
Interset is compounded or simple its not mentioned
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Re: If one of Jean's credit cards charges more than 2 percent [#permalink]
Archit143 wrote:
Interset is compounded or simple its not mentioned

Since the question only speaks about monthly interest rate and the period is only one month, it does not matter whether it is simple or compound.

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