GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Nov 2018, 06:14

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • How to QUICKLY Solve GMAT Questions - GMAT Club Chat

     November 20, 2018

     November 20, 2018

     09:00 AM PST

     10:00 AM PST

    The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.
  • The winning strategy for 700+ on the GMAT

     November 20, 2018

     November 20, 2018

     06:00 PM EST

     07:00 PM EST

    What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

At the end of year X, automobile installment credit accounte

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Current Student
avatar
Joined: 12 Sep 2012
Posts: 7
Location: India
Concentration: International Business, Entrepreneurship
GMAT 1: 650 Q46 V33
GPA: 4
WE: Information Technology (Computer Software)
At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 11 Nov 2013, 12:31
3
30
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

69% (02:13) correct 31% (02:13) wrong based on 824 sessions

HideShow timer Statistics

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!
Most Helpful Community Reply
Manager
Manager
avatar
Joined: 26 Sep 2013
Posts: 196
Concentration: Finance, Economics
GMAT 1: 670 Q39 V41
GMAT 2: 730 Q49 V41
Re: Automobile Installment Credit  [#permalink]

Show Tags

New post 11 Nov 2013, 17:12
8
7
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?
General Discussion
Manager
Manager
User avatar
Joined: 10 May 2014
Posts: 138
Premium Member
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 29 Dec 2014, 18:39
6
3
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
- The correct answer will be slightly smaller than 513. Therefore, the correct answer is 475.
_________________

Consider giving me Kudos if I helped, but don´t take them away if I didn´t! :)

What would you do if you weren´t afraid?

SVP
SVP
User avatar
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1826
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 30 Dec 2014, 20:30
1
Answer = C. 475

Total automobile instalment credit = 57*3 = 171

Total consumer instalment credit \(= 171*\frac{100}{36} = 475\)
_________________

Kindly press "+1 Kudos" to appreciate :)

Manager
Manager
User avatar
Joined: 05 Jul 2015
Posts: 101
Concentration: Real Estate, International Business
GMAT 1: 600 Q33 V40
GPA: 3.3
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 25 Feb 2016, 16:01
The way I minimized the time it took is by saving all the calculations until the end.

I wrote: (57*3)/3*2*3*2 and you'll get 57/12 which the first number when you divide starts with a 4 so I clicked C.
Intern
Intern
User avatar
Status: My heart can feel, my brain can grasp, I'm indomitable.
Affiliations: Educator
Joined: 16 Oct 2012
Posts: 39
Location: Bangladesh
WE: Social Work (Education)
At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 22 Jun 2016, 22:08
AccipiterQ wrote:
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?

1/3 extended, 3+1= total 4 parts, 1 part=57 billion then total automobile installment credit=45*4=228 billion , instead of 57*3

anybody pls help me to make it clear.
_________________

please press "+1 Kudos" if useful

Director
Director
User avatar
B
Status: I don't stop when I'm Tired,I stop when I'm done
Joined: 11 May 2014
Posts: 537
Location: Bangladesh
Concentration: Finance, Leadership
GPA: 2.81
WE: Business Development (Real Estate)
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 23 Jun 2016, 01:21
1
jasimuddin wrote:
AccipiterQ wrote:
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?

1/3 extended, 3+1= total 4 parts, 1 part=57 billion then total automobile installment credit=45*4=228 billion , instead of 57*3

anybody pls help me to make it clear.


IMO,You missed a point

The question asked you to find the amount of consumer installment credit NOT the amount of automobile installment credit

According to question,

\(\frac{1}{3}\) of automobile installment credit=$57 billion,so total automobile installment credit=57*3=$171 billion

So,$171 billion=36% of consumer installment credit,Now we can calculate to find consumer installment credit=\(\frac{171*100}{36}\)=475

Correct Answer C
_________________

Md. Abdur Rakib

Please Press +1 Kudos,If it helps
Sentence Correction-Collection of Ron Purewal's "elliptical construction/analogies" for SC Challenges

Manager
Manager
avatar
B
Joined: 23 Dec 2013
Posts: 159
Location: United States (CA)
GMAT 1: 710 Q45 V41
GMAT 2: 760 Q49 V44
GPA: 3.76
Reviews Badge
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 22 Jul 2017, 18:23
1
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!


C = outstanding consumer installment credit

auto = 36C/100

57 = 36C/300

57 = 12C/100

57 = 6C/50
57=3C/25

C = 475
Target Test Prep Representative
User avatar
G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2830
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 11 Dec 2017, 09:52
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


We are given that at the end of year X, automobile installment credit accounted for 36% of all outstanding consumer installment credit and that at that time, automobile finance companies extended $57 billion of credit, or 1/3 of the automobile installment credit.

If we let A = the amount of automobile credit, we can create the following equation:

57 billion = (1/3)A

171 billion = A

Since automobile credit or A = 171 billion, and automobile installment credit accounted for 36% of all outstanding consumer installment credit, we can create the following equation in which N = all outstanding credit.

0.36N = 171 billion

N = (171 billion)/0.36

N = 475 billion

Answer: C
_________________

Jeffery Miller
Head of GMAT Instruction

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Intern
Intern
avatar
B
Joined: 18 Oct 2013
Posts: 5
At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 27 Dec 2017, 12:50
I set this up essentially the same way as everyone else did BUT avoided algebra by leveraging number properties.

36% Total = Auto Credit
1/3 Auto Credit = $57B

Substitute & re-arrange I get 9/25 * x = 171. I want to solve for X.

Now this is how one can avoid some algebra: namely, number properties.

Looking at the answers (something one should do in any PS problems before diving straight in) one would notice that all are integers. The only way for a Fraction * Integer = Integer is if the denominator of that fraction cancels out. In this case we have 25 (primes of 5s only), so I look for an answer that is a multiple of 5 (last digit either 0 or 5). There is only one answer which is C.
CEO
CEO
User avatar
D
Joined: 11 Sep 2015
Posts: 3122
Location: Canada
Re: At the end of year X, automobile installment credit accounte  [#permalink]

Show Tags

New post 10 Jan 2018, 12:17
Top Contributor
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


This questions illustrates the importance of ALWAYS checking the answer choices BEFORE getting bogged down with time-consuming calculations. For more on this important strategy, watch the video below.

IMPORTANT: Notice that the answer choices are reasonably spread apart. This means we may be able to use some ESTIMATION to find the answer quickly.

$57 billion of credit equals 1/3 of the automobile installment credit
So, the automobile installment credit = (3)($57 billion) = $171 billion

Automobile installment credit accounted for 36% of all outstanding consumer installment credit
IMPORTANT ESTIMATION CONCEPTS:
If x is 25% of y, then y = 4x
If x is 33 1/3% of y, then y = 3x
If x is 50% of y, then y = 2x
Since 36% is a little more than 33 1/3% we can conclude the following: if x is 36% of y, then y = a little less than 3x


The question tells us that automobile installment credit (worth $171 billion) accounts 36% of all outstanding consumer installment credit.
In other words, $171 billion is 36% of all outstanding consumer installment credit.
So, all outstanding consumer installment credit = little less than 3($171)
3(171) = 513, so the correct answer is a little less than $513 billion.
Answer choice C is a little less than$513 billion, so it must be the correct answer.

RELATED VIDEO

_________________

Test confidently with gmatprepnow.com
Image

GMAT Club Bot
Re: At the end of year X, automobile installment credit accounte &nbs [#permalink] 10 Jan 2018, 12:17
Display posts from previous: Sort by

At the end of year X, automobile installment credit accounte

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.