Question

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

Answer 1

475 billion dollars

Explanation:

Let P be the customer credit

At the end of year X, 36% of P is gotten from automobile installment credit

57 billion credit is 1/3 of the automobile installment credit. This means that the total automobile installment credit 57*3 = 171 billion dollars

36% * P = 171

36/100 * P = 171

36P = 171 *100

P = 17100/36

P= 475 billion dollars