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19 Mar 2026, 05:00
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
46% (02:17) correct
54%
(02:15)
wrong
based on 50
sessions
History
Date
Time
Result
Not Attempted Yet
Regulator: Your loan portfolio seems risky—too many unsecured loans.
Manager: That concern is overstated. Only two out of every five loans are made to borrowers without collateral.
Regulator: But those loans account for 60% of the total amount lent by your bank, don’t they?
Based on the information above, by what percent is the average loan size to borrowers without collateral higher than that to borrowers with collateral?
A. 50%
B. 150%
C. 125%
D. 225%
E. 325%
Manager: That concern is overstated. Only two out of every five loans are made to borrowers without collateral.
Regulator: But those loans account for 60% of the total amount lent by your bank, don’t they?
Based on the information above, by what percent is the average loan size to borrowers without collateral higher than that to borrowers with collateral?
A. 50%
B. 150%
C. 125%
D. 225%
E. 325%
kevincan
Let the two unsecured loans amt to \(60\)
Let the three secured loans amt to \(40\)
Average unsecured loan \(= \frac{60}{2}= 30\)
Average secured loan \( = \frac{40}{3}\)
Amt by which avg unsecured loan is higher \(=30 -\frac{40}{3}= \frac{50}{3}\)
\(\frac{\frac{50}{3} }{ \frac{40}{3}}*100 = 125\%\)
Ans C
Hope it helped.
27 Mar 2026, 22:56
Kudos
Bookmarks
say value of with collateral loan = X
value of without collateral loan = y
now without collateral loan accounts for 60% of total
and we know number of loans without collateral are 2 and with collateral are 3
so, 2y = (3/5) (3x+2y)
by solving we get, y= (9x/4)
we need to find, how much percent y is bigger than x
y = (100+p/100) x
9x/4 = (100+p/100) x
900 = 400 + 4p
500 = 4p
p = 125%
option C
value of without collateral loan = y
now without collateral loan accounts for 60% of total
and we know number of loans without collateral are 2 and with collateral are 3
so, 2y = (3/5) (3x+2y)
by solving we get, y= (9x/4)
we need to find, how much percent y is bigger than x
y = (100+p/100) x
9x/4 = (100+p/100) x
900 = 400 + 4p
500 = 4p
p = 125%
option C
kevincan
