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At the end of year X, automobile installment credit accounte

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Intern
Intern
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Joined: 12 Sep 2012
Posts: 7
Location: India
Concentration: International Business, Entrepreneurship
GMAT Date: 11-14-2013
GPA: 4
WE: Information Technology (Computer Software)
Followers: 0

Kudos [?]: 7 [0], given: 2

At the end of year X, automobile installment credit accounte [#permalink] New post 11 Nov 2013, 12:31
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A
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C
D
E

Difficulty:

  45% (medium)

Question Stats:

61% (01:43) correct 39% (00:46) wrong based on 54 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
1 KUDOS received
Manager
Manager
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Joined: 26 Sep 2013
Posts: 232
Concentration: Finance, Economics
GMAT 1: 670 Q39 V41
GMAT 2: 730 Q49 V41
Followers: 2

Kudos [?]: 37 [1] , given: 40

Re: Automobile Installment Credit [#permalink] New post 11 Nov 2013, 17:12
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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?
Re: Automobile Installment Credit   [#permalink] 11 Nov 2013, 17:12
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At the end of year X, automobile installment credit accounte

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