Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 23 May 2017, 00:47

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# On Jane's credit card account, the average daily balance for

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Manager
Joined: 07 Feb 2010
Posts: 158
Followers: 2

Kudos [?]: 630 [5] , given: 101

On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

21 Dec 2010, 09:26
5
KUDOS
20
This post was
BOOKMARKED
00:00

Difficulty:

85% (hard)

Question Stats:

49% (02:20) correct 51% (01:25) wrong based on 496 sessions

### HideShow timer Statistics

On Jane's credit card account, the average daily balance for 30-day billing cycle is the average (arithmetic mean) 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 amounts were added to or subtracted from the account during the billing cycle, what was the average daily balance on Jane'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. [Reveal] Spoiler: OA Last edited by Bunuel on 27 Sep 2014, 05:53, edited 2 times in total. Edited the stem. Math Expert Joined: 02 Sep 2009 Posts: 38801 Followers: 7715 Kudos [?]: 105828 [7] , given: 11589 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 21 Dec 2010, 10:24 7 This post received KUDOS Expert's post 14 This post was BOOKMARKED anilnandyala wrote: On Jane's credit card account, the average daily balance for 30-day billing cycle is the average (arithmetic mean) 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 amounts were added to or substracted from the account during the billing cycle, what was the average daily balance on Jane'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.

Question basically ask on which day did Jane make the payment of $300. Or algebraically: $$average \ daily \ balance=\frac{x*600+(30-x)*300}{30}$$ --> for the first $$x$$ days the balance will be$600 and then for $$(30-x)$$ days the balance will be $600-$300=$300 (meaning that Jane made a payment of$300 on the (x+1)st day). So all we need to know is on which day did Jane make the payment of $300, the value of x+1. (1) Jane's payment was credited on the 21st day of the billing cycle --> directly gives the value of $$x+1$$ --> $$x+1=21$$ --> $$x=20$$: for 20 days the balance was$600 and for the rest 10 days (from 21st) it was $300 --> we can find the average daily balance. Sufficient. (2) The average daily balance through the 25th day of the billing cycle was$540 --> $$average_{25 \ days}=540=\frac{x*600+(25-x)*300}{25}$$ --> we can find $$x$$ --> we can find the average daily balance. Sufficient.

_________________
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7368
Location: Pune, India
Followers: 2281

Kudos [?]: 15079 [4] , given: 224

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

31 Dec 2010, 09:45
4
KUDOS
Expert's post
4
This post was
BOOKMARKED
jonblazon wrote:

On Jane's credit card account, the average daily balance for a 30-day billing cycle is the average (arithmetic mean) of the daily balances at the end 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 amounts were added to or subtracted from the account during the billing cycle, what was the average daily balance on Jane'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. Thanks! Long question stem... Though try to identify that the question is just testing you on weighted averages. For some days the account had$600, for rest of the days, the account had $300 in it. We need to find the average of the amount in the account (it is weighted because the two amounts could have been in the account for different durations.) Stmnt 1 - We know now that the account had$600 for 20 days and $300 for the rest of the 10 days. You can easily find the average. Sufficient. You don't need to since it is a DS question, but if you had to find the average, then Avg = (600*20 + 300*10)/30 = 500 or using scale method: Attachment: Ques1.jpg [ 3.77 KiB | Viewed 13934 times ] Stmnt 2 - Average for first 25 days = 540 so you can find for how many of these 25 days, the account balance was 600 and for how many was it 300. The rest of the 5 days, the balance was of course$300. Hence sufficient.

If you want to do the calculations:
Attachment:

Ques2.jpg [ 3.9 KiB | Viewed 13926 times ]

No of days $300 balance : No of days$600 balance = 1:4
So out of 25 days, (1/5)*25 = 5 days, the balance was $300. (4/5)*25 = 20 days the balance was$600.

_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Manager Status: UC Berkeley 2012 Joined: 03 Jul 2010 Posts: 190 Location: United States Concentration: Economics, Finance GPA: 4 WE: Consulting (Investment Banking) Followers: 3 Kudos [?]: 16 [2] , given: 10 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 31 Dec 2010, 05:37 2 This post received KUDOS 1 This post was BOOKMARKED 1)you know that for the first 20 days you have a balance of 600, for the following a balance of 300 and then just averaging 2)you know that for the first 25 days the average balance is 540 and for the following days you have a balance of 300 each. Just take 25*540 + 5*300 and divide it by 30 again ... Hope I could help you! Manager Joined: 31 May 2011 Posts: 87 Location: India Concentration: Finance, International Business GMAT Date: 12-07-2011 GPA: 3.22 WE: Information Technology (Computer Software) Followers: 1 Kudos [?]: 52 [2] , given: 4 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 19 Nov 2011, 23:39 2 This post received KUDOS 1 This post was BOOKMARKED At the staring of the month we have 600$. Some where in the middle 300$is withdrawn. If we know the date when this happened or the average on a date after the amount is withdrawn. We can find a soln. S1: amount withdrawn on 21st. Hence : av = (20*600+10*300)/30 av = 500. Sufficient S2: given av as 540 on 25th. As the average is less than 600$ we know as of 26th the amount in the account is 300$. hence av= (25*540+5*300)/30 av= 500 Sufficient. Hence D Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7368 Location: Pune, India Followers: 2281 Kudos [?]: 15079 [2] , given: 224 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 05 Jul 2012, 22:02 2 This post received KUDOS Expert's post smartmanav wrote: I need more help here read the 2nd statement : The average daily balance through the 25th day of the billing cycle was$540.

Perhaps the payment was deducted from her account n 27th day but they just provided the avg for first 25 days , in that case we will not be able to solve it. No ??

The average of the 25 days is $540. If the average were$600, only then can we say that the deduction was made after the 25th day. Since the average is less than $600, the deduction must have been made before the 25th day. Only then can the average be less than 600. Now, it is simple to find the average (even though you don't need to) For 25 days, the average balance was$540 and for 5 days, it was $300. Avg = (540*25 + 300*5)/30 = 500 _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Senior Manager
Joined: 21 Mar 2010
Posts: 312
Followers: 5

Kudos [?]: 30 [0], given: 33

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

22 Feb 2011, 13:11
VeritasPrepKarishma wrote:
jonblazon wrote:

On Jane's credit card account, the average daily balance for a 30-day billing cycle is the average (arithmetic mean) of the daily balances at the end 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 amounts were added to or subtracted from the account during the billing cycle, what was the average daily balance on Jane'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. Thanks! Long question stem... Though try to identify that the question is just testing you on weighted averages. For some days the account had$600, for rest of the days, the account had $300 in it. We need to find the average of the amount in the account (it is weighted because the two amounts could have been in the account for different durations.) Stmnt 1 - We know now that the account had$600 for 20 days and $300 for the rest of the 10 days. You can easily find the average. Sufficient. You don't need to since it is a DS question, but if you had to find the average, then Avg = (600*20 + 300*10)/30 = 500 or using scale method: Attachment: Ques1.jpg Stmnt 2 - Average for first 25 days = 540 so you can find for how many of these 25 days, the account balance was 600 and for how many was it 300. The rest of the 5 days, the balance was of course$300. Hence sufficient.

If you want to do the calculations:
Attachment:
Ques2.jpg

No of days $300 balance : No of days$600 balance = 1:4
So out of 25 days, (1/5)*25 = 5 days, the balance was $300. (4/5)*25 = 20 days the balance was$600.

Interesting approach but i find the algebraic formula easier. Esp for the second statement. This seems time consuming
Director
Status: Finally Done. Admitted in Kellogg for 2015 intake
Joined: 25 Jun 2011
Posts: 537
Location: United Kingdom
Concentration: International Business, Strategy
GMAT 1: 730 Q49 V45
GPA: 2.9
WE: Information Technology (Consulting)
Followers: 77

Kudos [?]: 3369 [0], given: 217

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

18 Nov 2011, 14:05
On Jane's credit card account, the average daily balance for a 30-day billing cycle is average (arithmetic mean) of the daily balances at the end 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 amounts were added to or subtracted from the account during the billing cycle, what was average daily balance on Jane'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. Struggling to solve this. Can you please help? OA is not provided. _________________ Best Regards, E. MGMAT 1 --> 530 MGMAT 2--> 640 MGMAT 3 ---> 610 GMAT ==> 730 Math Expert Joined: 02 Sep 2009 Posts: 38801 Followers: 7715 Kudos [?]: 105828 [0], given: 11589 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 04 Feb 2012, 14:17 enigma123 wrote: On Jane's credit card account, the average daily balance for a 30-day billing cycle is average (arithmetic mean) of the daily balances at the end 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 amounts were added to or subtracted from the account during the billing cycle, what was average daily balance on Jane'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.

Struggling to solve this. Can you please help? OA is not provided.

Merging similar topics. Please ask if anything remains unclear.
_________________
Intern
Joined: 18 Jun 2012
Posts: 39
Followers: 1

Kudos [?]: 7 [0], given: 15

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

05 Jul 2012, 19:06
I need more help here
read the 2nd statement : The average daily balance through the 25th day of the billing cycle was $540. Perhaps the payment was deducted from her account n 27th day but they just provided the avg for first 25 days , in that case we will not be able to solve it. No ?? Senior Manager Joined: 22 Dec 2011 Posts: 293 Followers: 3 Kudos [?]: 265 [0], given: 32 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 10 Oct 2012, 06:23 VeritasPrepKarishma wrote: smartmanav wrote: I need more help here read the 2nd statement : The average daily balance through the 25th day of the billing cycle was$540.

Perhaps the payment was deducted from her account n 27th day but they just provided the avg for first 25 days , in that case we will not be able to solve it. No ??

The average of the 25 days is $540. If the average were$600, only then can we say that the deduction was made after the 25th day. Since the average is less than $600, the deduction must have been made before the 25th day. Only then can the average be less than 600. Now, it is simple to find the average (even though you don't need to) For 25 days, the average balance was$540 and for 5 days, it was $300. Avg = (540*25 + 300*5)/30 = 500 this is good stuff! Nice! thanks.... GMAT Club Legend Joined: 09 Sep 2013 Posts: 15391 Followers: 648 Kudos [?]: 204 [0], given: 0 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 28 Nov 2013, 05:50 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Senior Manager Joined: 03 Dec 2012 Posts: 344 Followers: 1 Kudos [?]: 141 [0], given: 291 Re: On Jane's credit card account, the average daily balance for [#permalink] ### Show Tags 28 Nov 2013, 05:55 Bunuel wrote: anilnandyala wrote: On Jane's credit card account, the average daily balance for 30-day billing cycle is the average (arithmetic mean) 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 amounts were added to or substracted from the account during the billing cycle, what was the average daily balance on Jane'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.

Question basically ask on which day did Jane make the payment of $300. Or algebraically: $$average \ daily \ balance=\frac{x*600+(30-x)*300}{30}$$ --> for the first $$x$$ days the balance will be$600 and then for $$(30-x)$$ days the balance will be $600-$300=$300 (meaning that Jane made a payment of$300 on the (x+1)st day). So all we need to know is on which day did Jane make the payment of $300, the value of x+1. (1) Jane's payment was credited on the 21st day of the billing cycle --> directly gives the value of $$x+1$$ --> $$x+1=21$$ --> $$x=20$$: for 20 days the balance was$600 and for the rest 10 days (from 21st) it was $300 --> we can find the average daily balance. Sufficient. (2) The average daily balance through the 25th day of the billing cycle was$540 --> $$average_{25 \ days}=540=\frac{x*600+(25-x)*300}{25}$$ --> we can find $$x$$ --> we can find the average daily balance. Sufficient.

Bunuel, what is the purpose of the first sentence in the question. Has it been mentioned to simply confuse or am I missing something?
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 15391
Followers: 648

Kudos [?]: 204 [0], given: 0

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

13 Dec 2014, 00:20
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 15391
Followers: 648

Kudos [?]: 204 [0], given: 0

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

16 Feb 2016, 20:55
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 15391
Followers: 648

Kudos [?]: 204 [0], given: 0

Re: On Jane's credit card account, the average daily balance for [#permalink]

### Show Tags

04 Apr 2017, 19:07
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: On Jane's credit card account, the average daily balance for   [#permalink] 04 Apr 2017, 19:07
Similar topics Replies Last post
Similar
Topics:
1 A savings account earned 1% interest compounded each month, credited o 1 26 Jan 2016, 20:34
8 A list kept at Town Hall contains that town's average daily temperatur 8 07 Oct 2016, 23:44
1 The average (arithmetic mean) monthly balance in Company X's 2 10 Mar 2010, 21:32
54 Tom, Jane, and Sue each purchased a new house. The average 21 02 Sep 2016, 04:20
12 On Jane's credit card account, the average daily balance for 30-day bi 15 27 Sep 2014, 05:52
Display posts from previous: Sort by

# On Jane's credit card account, the average daily balance for

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.