Question

In 1995, the export of Company A was double that of Company B. If the imports of Company A during the year was Rs.180 crores, what was the approximate amount of imports of Company B during that year?

• A. Rs. 190 crores
• B. Rs. 210 crores
• C. Rs. 225 crores
• D. Cannot be determined
• E. None

Answer 1

The correct option is B

Rs. 210 crores

In 1995 for Company A:

$\frac{E_A}{I_A}=1.75-----\left(i\right)$ [where $E_A$ = amount of exports and I${}_A$ = amount of imports of Company A in 1995]

In 1995 for Company B:

$\frac{E_B}{I_B}=0.75-------\left(ii\right)$ [ where $E_B$ = amount of exports and I${}_B$ = amount of imports of Company B in 1995]

Also, we have $E_A=2E_B$ -------(iii)

Substituting $I_A$ = Rs.180 crores (given) in (i), we get

$E_A$ = Rs. (180 x 1.75) crores = Rs.315 crores

Using $E_A$ = Rs. 315 crores in (iii), we get : $E_B=\frac{E_A}{2}=Rs.\left(\frac{315}{2}\right)crores$

Substituting $E_B$ = Rs. $\left(\frac{315}{2}\right)crores$ in (ii), we get :

$I_B=\frac{E_B}{0.75}=Rs.\left(\frac{315}{2\times 0.75}\right)$ crores = Rs.210 crores

$\therefore$ Amount of imports of Company B in 1995 = Rs. 210 crores