Made easy workbook, Data interpretation

Question

The GDP in Rupees grew at 7% during 2012-13.For international comparison, the GDP is compared in US Dollars after conversion based on the market exchange rate. During the period 2012-13 the ₹ 50aUSD to ₹ 60USD. India's GDP in USD during the period 2012-13

a- increased by 5%

b- decreased by 13%

c- decreased by 20%

d- decreased by 11%

Answer 1

Let the GDP in the previous year be Rs. $X$.

Then the GDP this year would be $X + \frac{7}{100}(X) = \frac{107}{100}(X) = 1.07X$ Rs.

Previous year GDP in \$: $\frac{X}{50}$

Next year GDP in \$: $\frac{1.07X}{60}$

$$\text{%age change} = \frac{\frac{1.07X}{60} – \frac{X}{50}}{\frac{X}{50}}\times 100$$

$$ = 50\times\frac{(50\times1.07) – 60}{3000}\times100$$

$$ = \frac{53.5 – 60}{60}\times100 = -10.8333$$

Nearly equal to a 11% decrease. 

Option (d) would be most appropriate.