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# Karyn uses a certain credit card that sends her a monthly

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Senior Manager
Joined: 02 Oct 2005
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Karyn uses a certain credit card that sends her a monthly  [#permalink]

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05 Nov 2005, 11:12
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Karyn uses a certain credit card that sends her a monthly
rebate of 2% of all of her purchases. In a certain year,
Karyn received an average (arithmetic mean) rebate of $9 a month. What was the total amount of Karyn's purchases on the credit card that year? A.$5,400
B. $6,250 C.$4,800
D. $3,375 E.$5,924
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Joined: 04 Oct 2005
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05 Nov 2005, 11:29
rebate of 9$annually means a total rebate of 9*12 for the year = 108$

108 is 2% of x --> 108 / 2/100 = 10800 / 2 = 5400 = Answer A
Senior Manager
Joined: 02 Oct 2005
Posts: 297
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05 Nov 2005, 20:15
OA is A and here is the detailed explanation for other's benefit:

We first need to determine how much of a rebate Laura spent
during the year.

Mean = (sum of all values) / (number of values)

$9 = (sum of all values) / 12$108 = (sum of all values)

Thus, she received a total rebate of $108 for the year. This means that$108 was 2% of her purchases for the year. We can
now set up the following equation:

(Purchases) * .02 = $108 Purchases =$108/.02
Purchases = \$5,400
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