Question

At the end of year X, automobile installment credit accounted for 36 percent of all outstanding consumer installment credit. At that time automobile finance companies extended $57 billion of credit, or \small \frac{1}{3} of the automobile installment credit. How many billion dollars of consumer installment credit was outstanding at that time?A. 62B. 171C. 475D. 513E. 684

Answer 1

option (c) 475

Explanation:

let the automobile installment credit be 'C'

Given:.

Automobile installment credit accounted for 36 percent of all outstanding consumer installment credit

Now,

57 billion is
`(1)/(3)` of automobile installment credit

or

57 billion =
`(1)/(3)` × C

or

C = 57 × 3

or

C = 171 billion

now,

installment credit accounted = 36% of all outstanding consumer installment credit

or

171 billion = 0.36 × all outstanding consumer installment credit

or

All outstanding consumer installment credit = $475 billion

Hence, the correct answer is option (c) 475