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# Raymond borrowed $450 at 0% interest. If he pays back 0.5%  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Retired Moderator Joined: 07 Jun 2014 Posts: 4803 GRE 1: Q167 V156 WE: Business Development (Energy and Utilities) Followers: 171 Kudos [?]: 2915 [0], given: 394 Raymond borrowed$450 at 0% interest. If he pays back 0.5% [#permalink]  02 Jun 2018, 03:34
Expert's post
00:00

Question Stats:

81% (01:01) correct 18% (00:53) wrong based on 32 sessions
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
[Reveal] Spoiler: OA

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Sandy
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Manager
Joined: 02 May 2018
Posts: 58
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Kudos [?]: 30 [0], given: 22

Re: Raymond borrowed $450 at 0% interest. If he pays back 0.5% [#permalink] 19 Jun 2018, 15:09 We first start off with the equation $$450 * .005 = X$$. X stands for the total amount he pays every 7 days. X=2.25 dollars. If he has paid back 18 dollars already, then we can divide the amount he pays (2.25) by 18 to get how many weeks he has paid so far. $$18 / 2.25 = 8$$ He has paid for 8 weeks. Since the question is asking for days, we multiply 8 by 7 to get the answer. 8 * 7 = 56 The correct answer is E. Retired Moderator Joined: 07 Jun 2014 Posts: 4803 GRE 1: Q167 V156 WE: Business Development (Energy and Utilities) Followers: 171 Kudos [?]: 2915 [0], given: 394 Re: Raymond borrowed$450 at 0% interest. If he pays back 0.5% [#permalink]  01 Jul 2018, 14:07
Expert's post
Explanation

1% of $450 is$4.50, so 0.5% is $2.25. That’s the amount Raymond pays back every week. Because he has paid back$18 in total, divide 18 by 2.25 to determine the total number of payments:
$$\frac{18}{2.25}= 8.$$

So Raymond has made 8 payments, once every 7 days. The payments themselves spread over only a 7-week period (in the same way that 2 payments spread over only a 1-week period).

Raymond waited 1 week to begin repayment, however, so a total of 8 weeks, or 56 days, have passed since he borrowed the money.
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Sandy
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Joined: 22 Oct 2019
Posts: 8
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Re: Raymond borrowed $450 at 0% interest. If he pays back 0.5% [#permalink] 18 Jan 2020, 16:01 The correct answer is E (56) Manager Joined: 02 Mar 2020 Posts: 55 Followers: 0 Kudos [?]: 7 [0], given: 2 Re: Raymond borrowed$450 at 0% interest. If he pays back 0.5% [#permalink]  13 Mar 2020, 11:07
How did everyone know to keep taking .005*450 and not .005*(450-2.225) and so on?