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# Credit card account

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Manager
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 [?]: 68 [0], given: 3

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18 Aug 2011, 15:55
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 _________________ Thanks Sumeet http://www.midasreturns.wordpress.com Manager 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 [?]: 68 [0], given: 3 Re: Credit card account [#permalink] ### Show Tags 18 Aug 2011, 15:57 I am sorry - I thought I was in DS forum. Can you please move it Mr. Morderator? _________________ Thanks Sumeet http://www.midasreturns.wordpress.com Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7372 Location: Pune, India Followers: 2287 Kudos [?]: 15099 [0], given: 224 Re: Credit card account [#permalink] ### Show Tags 18 Aug 2011, 22:57 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]

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19 Aug 2011, 09:41
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Looking for modern floor lamps........   [#permalink] 19 Aug 2011, 09:41
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