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# At the end of year X, automobile installment credit accounte

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Joined: 12 Sep 2012
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At the end of year X, automobile installment credit accounte [#permalink]  11 Nov 2013, 12:31
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Difficulty:

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Question Stats:

71% (01:47) correct 29% (00:44) wrong based on 164 sessions
At the end of year X, automobile installment credit accounted for 36% of all outstanding consumer installment credit. At that time automobile finance companies extended $57 billion of credit, or 1/3 of the automobile installment credit. How many billion dollars of consumer installment credit was outstanding at that time? A. 62 B. 171 C. 475 D. 513 E. 684 Kindly help in solving this! [Reveal] Spoiler: OA Current Student Joined: 26 Sep 2013 Posts: 221 Concentration: Finance, Economics GMAT 1: 670 Q39 V41 GMAT 2: 730 Q49 V41 Followers: 3 Kudos [?]: 82 [3] , given: 40 Re: Automobile Installment Credit [#permalink] 11 Nov 2013, 17:12 3 This post received KUDOS 1 This post was BOOKMARKED ppravin88 wrote: At the end of year X, automobile installment credit accounted for 36% of all outstanding consumer installment credit. At that time automobile finance companies extended$57 billion of credit, or 1/3 of the automobile installment credit. How many billion dollars of consumer installment credit was outstanding at that time?

A. 62
B. 171
C. 475
D. 513
E. 684

Kindly help in solving this!

So we're trying to find ALL consumer installment credit, let's call that Q.

So at the end of the year we know that 36% of Q comes from automobile installment credit. So we need to figure out the number for automobile installment credit, and then we can solve for Q. We're told that 57 billion is 1/3 of the automobile installment credit amount. So the full amount of automobile installment credit (in billions) is: 57*3 (since 1/3 of the amount is 57 billion, we multiply by 3 to find the full amount. This gives 171 (billion).

So going back to the stem we know that 36% of outstanding consumer credit (which we are calling Q) comes from automobile credit. So 171 is 36% of what number?

.36*Q=171

Q=171/.36

Q=475

so answer is C. Are you sure that was a 700 level problem?
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Re: At the end of year X, automobile installment credit accounte [#permalink]  15 Nov 2014, 09:13
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Re: At the end of year X, automobile installment credit accounte [#permalink]  29 Dec 2014, 18:39
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BOOKMARKED
System of Equations
a = (36/100) c
(1/3) a = 57 --> a = 171

Substitution
171 = (36/100) c
c = (100/36) 171

You now have 2 ways
- You can do the ugly calculation 171/36 * 100
- Or you can notice that 100/36 is slightly smaller than 3. That way 171 * (100/3) will be slightly smaller than 171 * 3.

THE TRAP!
- 171 * 3 is actually 513, the reason why the test makers placed this trap-answer.

- The correct answer will be slightly smaller than 513. Therefore, the correct answer is 475.
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Re: At the end of year X, automobile installment credit accounte [#permalink]  30 Dec 2014, 20:30

Total automobile instalment credit = 57*3 = 171

Total consumer instalment credit $$= 171*\frac{100}{36} = 475$$
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Re: At the end of year X, automobile installment credit accounte   [#permalink] 30 Dec 2014, 20:30
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