Logical reasoning PrepTest 129 · Section 2 · Question 3

Incorrect. The stimulus specifically notes that it was the average payment "for these ten loans" that increased, so other loans are out of scope.

Incorrect. Those loans would have no impact on the monthly payment average on these loans. Maybe if this answer established that some of the small companies borrowed so much that they went out of business and therefore weren't repaying the loans at all, this answer would resolve the paradox, but it doesn't say that.

Incorrect. Since all of the loans leading to the paradox were $100k or under, the number of loans over that total are out of scope.

Correct. Argument or Facts:
Facts

Question Type:
Paradox

Stimulus Summary:
10 loans ranging from $10k to $100k had payments that increased each month, yet the average payment decreased by the end of the loan term.

Answer Anticipation:
Whatever you do, don't start doing math! The LSAT is never going to require any math—while sketching out some numbers quickly might help you understand a question, it'll never be required to answer a question.

Let's start here by framing the paradox. There are 10 loans, and each month the payment on each one goes up. However, at the end of this period of time, the average amount of the monthly payments went down. Each of the loan payments is higher, yet the average went down?

There's only one way that can happen. If all of the loans were still due, and the monthly payment on each went up, then the average would also have to go up. Therefore, some of the largest loans (or, at least, the ones that were higher than the average) must have been paid off early or ended by some other means (e.g., bankruptcy). The remaining loans all have monthly payments higher than when they started, but some of the largest monthly payments are no longer being paid, lowering the average monthly payment.

Answer Explanation:
This answer explains how the average would go down. If the three largest loans were paid off early, then the remaining 7 could each pay more per month while the average still decreased since those biggest monthly payments were no longer being submitted, bringing up the average.

Key Takeaway:
Don't do math! The LSAT doesn't require it, and you're likely to either confuse yourself or waste time. Questions can be solved without trying to math things out, so focus on the logic instead of the numbers.

Incorrect. All of the ten loans in question had payment plans that increased each month, so the other loans that decrease each month are out of scope.