Answer the questions based on the given line graph.
Ratio of Exports to Imports (in terms of money in Rs. crores) of Two Companies Over the Years
If the imports of Company A in 1997 were increased by 40 percent, what would be the ratio of exports to the increased imports?
A.
1.20
B.
1.25
C.
1.30
D.
Cannot be determined
Correct answer is B
In 1997 for Company A we have:
E/I = 1.75 i.e., E = 1.75I
where E amount of exports, I = amount of imports of Company A in 1997.
Now, the required imports I1 = I + 40% of I = 1.4I.
Therefore Required ratio = E/I1 = 1.75I/1.4I = 1.25.