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06 Mar 2016, 03:45
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
77% (01:38) correct
23%
(02:25)
wrong
based on 151
sessions
History
Date
Time
Result
Not Attempted Yet
A bank pays interest to its customers on the last day of the year. The interest paid to a customer
is calculated as 10% of the average monthly balance maintained by the customer. John is a
customer at the bank. On the last day, when the interest was accumulated into his account, his
bank balance doubled to $5680. What is the average monthly balance maintained by John in his
account during the year?
(A) 2840
(B) 5680
(C) 6840
(D) 7540
(E) 28400
____________________________________
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is calculated as 10% of the average monthly balance maintained by the customer. John is a
customer at the bank. On the last day, when the interest was accumulated into his account, his
bank balance doubled to $5680. What is the average monthly balance maintained by John in his
account during the year?
(A) 2840
(B) 5680
(C) 6840
(D) 7540
(E) 28400
____________________________________
Please give me kudos, if you like the above post.
Thanks.
06 Mar 2016, 04:04
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leeto
Hi,
.
bank balance is doubled with accumulation of interest tp 5680..
this means INTEREST is 5680/2=2840 for entire year..
although since interest is 10% of avg MONthly balance, it becomes 28400..
11 Jan 2026, 11:12
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leeto
Deconstructing the Question
Let \(B\) be the bank balance just before the interest payment.
Let \(I\) be the interest amount.
Let \(A\) be the average monthly balance.
Given:
1. Interest calculation: \(I = 0.10 \times A\)
2. The balance doubled to $5680 after interest was added.
Step 1: Analyze the Balance Doubling
The final balance is the sum of the initial balance and the interest.
\(\text{Final Balance} = B + I\)
Since the balance doubled:
\(2B = 5680\)
\(B = \frac{5680}{2} = 2840\).
Also, because the balance doubled (\(B + I = 2B\)), it implies that the Interest amount is equal to the initial Balance.
\(I = B = 2840\).
Step 2: Calculate the Average Monthly Balance
Using the interest formula provided:
\(I = 0.10 \times A\)
Substitute the value of \(I\):
\(2840 = 0.10 \times A\)
Solve for \(A\):
\(A = \frac{2840}{0.10}\)
\(A = 28400\)
Answer: E
