Findning the magnitude of the current
I agree that emf is 1.5V but I didn't like the formula used. It should be: -

emf = B.A/t (flux density x area divided by time)

Also you have used 0.01m as the length of one side and this is incorrect - it is 0.1m. All the same you got the correct answer of 1.5 volts!!

Then you go and say the induced current is 0.015 amps - this is incorrect it is 0.15 amps i.e. 1.5 volts divided by 10 ohms.

Direction of current induced can be gleaned from this: -



The image above is for a loop getting bigger and this is the same as the field increasing linearly whilst the loop stays the same size. Link. If the loop were getting smaller, this would be equivalent to the scenario in the question and therefore the direction of current would be opposite to that shown in the diagram above.

So the induced current is subtracting from the standing current of 0.5 amps to produce a current of 0.35 amps. Or just look at it in terms of the net voltage being 3.5 volts across a ten ohm resistor.