The graph below shows the projected ratio of amount of exports to amou

Question

The graph below shows the projected ratio of amount of exports to amount of imports of Company ABC over the next 6 months.

Over which two consecutive months did Company ABC experience the greatest percentage increase in exports ?

If the estimated exports for Month 1 are USD 90,000 and exports are projected to consistently increase by 5% every month over the next 6 months, what is the approximate value of projected imports for month 6 ?

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Dropdown 1: It cannot be determined from the information given Dropdown 2: USD 230,000

Banmeet · Answer

For question 1: Over which two consecutive months did Company ABC experience the greatest percentage increase in exports

=> It is clear from the graph that no consistent points are increasing, also, since there is no stats to refer, it is difficult to say which month has greater percentage increase in exports, Hence, Can not be determined.

For Question 2: If the estimated exports for Month 1 are USD 90,000 and exports are projected to consistently increase by 5% every month over the next 6 months, what is the approximate value of projected imports for month 6

Given: Exports for month 1: 90,000. 
To find out the import amount after 6 months. we will have to find out the exports for the last month.

First, let's find out the exports for the last month, as given that there is an increase of 5% every month for 6 months. 
Since the values in the Answer are far apart it is safe to take approximations. 
We can follow the simple interest formula or individually calculate 5% of each month, I will do both for better understanding.

1st method: Simple interest: P + PRT/100 = 90000+ 90000x5x6(we have to consider 5% every month)/100= 90000 + 27000= 117000( remember this is an approximation).

2nd method: by individually adding 5% 
So 5% for first month is 90000= 4500, making a total of exports to 94500 after the first month. 
We will apply the same for 2nd month, i.e, 5% of 94500= 4725, making exports after 2nd month be 99225. 
Similarly, we will do the same for 6 months, which will gives a total value of Export after 6months to be: 114200(approx)

Since we have a rough estimate of the exports, let's consider the given info to find out the imports after 6th month.

Exports= 114200(approx) 
Ratio of exports to imports for 6th month = .5( from Graph)
To find out: Imports

Lets plug-in the values, E/I=.5 or E/I =1/2

Imports for the 6th month or I = E*2, I.e 114200* 2= 228400(approx)

Answer choice: USD 230000.

Oppenheimer1945 · Answer

1) graph shows E/I, not E alone, Hence Not Suff

2) E/I =0.5, E=90,000(1+0.05)^3

Using (1+x)^n = 1+nx when x<<1,
E=90,000*1.3

I=2E=180000*1.3=233000 approx

sayan640 · Answer

I = (90000(1.05)^5 ) / .5 = 229730 almost equal 230,000

Kindly check ..

Spectre26 · Answer

For Question 1:

Export/ Import is given, from the graph only the ratio can be identified.
Value of import is required in order to identify if the export is decreasing or increasing.

Month 2 and Month 3 option might look tempting. But, there will be sharp rise in exports in this case only if import is constant.
Also the similar situation will arise, when Export is constant but import reduced significantly.

Hence the information provided is  not sufficient.

For Question 2:

Month 1 : $90000
Rate : 5%
Month 6 Imports : (90,000*(1.05)^5)/0.5 ~  230,000

The graph below shows the projected ratio of amount of exports to amou

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The graph below shows the projected ratio of amount of exports to amou

Prep Toolkit

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