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08 Jun 2018, 23:58
00:00

Difficulty:

45% (medium)

Question Stats:

61% (01:20) correct 39% (00:52) wrong based on 28 sessions

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Raymond borrowed $450 at 0% interest. If he pays back 0.5% of the total amount every 7 days, beginning exactly 7 days after the loan was disbursed, and has thus far paid back$18, with the most recent payment made today, how many days ago did he borrow the money?

(A) 6
(B) 8
(C) 25
(D) 42
(E) 56

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09 Jun 2018, 04:04
Bunuel wrote:
Raymond borrowed $450 at 0% interest. If he pays back 0.5% of the total amount every 7 days, beginning exactly 7 days after the loan was disbursed, and has thus far paid back$18, with the most recent payment made today, how many days ago did he borrow the money?

(A) 6
(B) 8
(C) 25
(D) 42
(E) 56

Since the calculation looks a bit tricky and involves non-integer values, we'll first look to the answers.
This is an Alternative approach.

Since Raymond pays once every 7 days, made his most recent payment today, and started paying 7 days after the loan, the answer must be a multiple of 7.
Only (D), (E) are possible.
Say (D) were true.
Then Raymond borrowed the money 42 days ago and has been paying for 42 - 7 = 35 days = 6 payments in total (because one payment is on the first and the other on the last day)
He paid 0.5% of 450, 2.25, per week so he should have paid 6 * 2.25 dollars = 12 + 1.5 =13.5 . Not enough!

(E) must be our answer.
Let's verify: 56 - 7 = 49 = 8 payments and 8 * 2.25 = 16 + 2 = 18. Yes!
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Save up to $250 on examPAL packages (special for GMAT Club members) Re: Raymond borrowed$450 at 0% interest. If he pays back 0.5% of the tota   [#permalink] 09 Jun 2018, 04:04
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# Raymond borrowed \$450 at 0% interest. If he pays back 0.5% of the tota

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