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At the end of year X, automobile installment credit accounte
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Author:  AndrewN [ 11 May 2021, 08:00 ]
Post subject:  Re: At the end of year X, automobile installment credit accounte

This question comes from GMAT Prep, specifically Practice Exam 4. (I just wrapped up a lesson in which I was helping a student go over questions from his practice test.) Bunuel, would you please add the appropriate tag?

Thank you.

- Andrew

Author:  Bunuel [ 11 May 2021, 08:08 ]
Post subject:  Re: At the end of year X, automobile installment credit accounte

AndrewN wrote:
This question comes from GMAT Prep, specifically Practice Exam 4. (I just wrapped up a lesson in which I was helping a student go over questions from his practice test.) Bunuel, would you please add the appropriate tag?

Thank you.

- Andrew

_____________________
Added the tag. Thank you!

Author:  billionaire999 [ 11 May 2021, 10:05 ]
Post subject:  Re: At the end of year X, automobile installment credit accounte

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!


CROSS MULTIPLY
Let all outstanding consumer installment credit = 100
automobile installment credit = 36% of 100
= 36

1/3rd of automobile credit= ( 1/3 ) * 36 = 12

Now as given,
= 57 billion = 1/3rd of automobile credit= ( 1/3 ) * 36 = 12

automobile credit outstanding consumer installment credit
12 100
57 X



X= (57 * 100)/12

= 475

ANSWER C

Author:  GMATGuruNY [ 10 Sep 2021, 12:07 ]
Post subject:  Re: At the end of year X, automobile installment credit accounte

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


$57 billion of credit, or 1/3 of the automobile installment credit.
Implication:
The automobile installment credit is a positive INTEGER.

Automobile installment credit accounted for 36% of all outstanding consumer installment credit.
How many billion dollars of consumer installment credit was outstanding at that time?

36% = 36/100 = 9/25
Since 9/25 of the correct answer must yield an integer value for the automobile installment credit, the correct answer must be a MULTIPLE OF 25.
Only C is viable.


Author:  bumpbot [ 19 Oct 2022, 19:23 ]
Post subject:  Re: At the end of year X, automobile installment credit accounte

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