Question

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with? a. $70.1 billion b. $24.9 billion c. $27.7 billion d. $26.3 billion

Answer 1

The correct answer is D. $26.3 Billion

Answer 2

Option d. $26.3 billion is the answer.

Explanation:

The NCUA pays to cover several failed credit unions = $1.36 billion

The fund is drains from its reserve fund = 5.18%

Let the fund to begin with be = x

Now equation would be

5.18% of x = $1.36 billion

Find the value of x

`(5.18)/(100)`x = 1,360,000,000

0.0518x = 1,360,000,000

`x=(1,360,000,000)/(0.0518)`

= 26,254,826,254.826 rounded to 26.3 billion

Option d. $26.3 billion is the answer.