DP Economics
Question 19N.3.HL.TZ0.3c
| Date | November 2019 | Marks available | [Maximum mark: 2] | Reference code | 19N.3.HL.TZ0.3c |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | c | Adapted from | N/A |
c.
[Maximum mark: 2]
19N.3.HL.TZ0.3c
In the country of Gardia, the currency is the gamma. The exchange rate of the United States dollar (US$) to the gamma is US$ 1 = 6.20 gamma.
Gardia received a loan of US$ 4 million from a foreign bank in 2018 when the exchange rate was US$ 1 = 5.3 gamma. It must pay back US$ 4.2 million (original amount borrowed plus interest) in 2019 when the exchange rate is US$ 1 = 6.2 gamma.
(c)
Calculate the additional cost of paying back the loan in gamma in 2019, due to the interest and the change in the exchange rate.
[2]
Markscheme
2018: 4 × 5.3 = 21.2
2019: 4.2 × 6.2 = 26.04
Any valid working is sufficient for [1].
26.04 − 21.2
= 4.84 million gamma or 4.84 million
An answer of 4.84 million or 4.84 or 4.84 million gamma without workings is sufficient for [1].
