93
QuizMultiple Choice

Home Ownership — Cumulative exam

Question 93 • Financial Math - MA2007

If the NCUA pays $1.92 billion to cover several failed credit unions, and doing so drains its reserve fund by 8.42%, approximately how much was in the fund to begin with?

Answer
A
$24.7 billion
B
$22.8 billion
C
$20.9 billion
D
$19.0 billion

Explanation

The $1.92 billion payout represents 8.42% of the reserve fund, so divide the payout by the decimal form of the percentage: $1.92 billion ÷ 0.0842 ≈ $22.8 billion. Therefore, the fund originally held approximately $22.8 billion, choice B.

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