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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2508
Given Kudos: 1053
GPA: 3.39
At the end of year X, automobile installment credit accounted for 36%
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29 Nov 2022, 08:30
29 Nov 2022, 08:30
1
Expert Reply
00:00
Question Stats:
71% (02:12) correct
28% (01:10) wrong based on 7 sessions
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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
A. 62
B. 171
C. 475
D. 513
E. 684
Re: At the end of year X, automobile installment credit accounted for 36%
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01 Dec 2022, 23:37
01 Dec 2022, 23:37
2
Expert Reply
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.
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.
Re: At the end of year X, automobile installment credit accounted for 36%
[#permalink]
02 Dec 2022, 21:10
02 Dec 2022, 21:10
1
$57 B is 1/3 of all auto loans; so 57 * 3 = 171 which is the total amount of auto loans
Auto loans comprise 36% of all loans, so 171 / .36 = 475 which is answer choice C
Auto loans comprise 36% of all loans, so 171 / .36 = 475 which is answer choice C
