Index NumbersMCQMTP June 24 Series IIQuestion 3932 of 197
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The consumer price index in $1980$ increases by $80$ per cent as compared to the base $1980$. A person in $1980$ getting $60,000$ per annum should now get

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option a — $1,08,000$ per annum

All Options:

  • A$1,08,000$ per annum
  • B$72,000$ per annum
  • C$64,000$ per annum
  • DNone of these

Detailed Solution & Explanation

We are given: - CPI increases by $80\%$ relative to the base period. This means the new CPI is: New CPI=100+80=180New CPI=100+80=180\displaystyle \text{New CPI} = 100 + 80 = 180 - Base salary = $60,000$ per annum To maintain the same standard of living, the new salary should be: New Salary=Base Salary×New CPI100=60000×180100=1,08,000 per annum\displaystyle \text{New Salary} = \text{Base Salary} ×\displaystyle \times New CPI100=60000\displaystyle \frac{\text{New CPI}}{100} = 60000 ×\displaystyle \times 180100=1\displaystyle \frac{180}{100} = 1,08,000  per annum\displaystyle \text{ per annum} Hence, **Option A** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

If ∑P0q0=240\displaystyle ∑\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle ∑\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle ∑\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle ∑\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

If ΣPnqn=249\displaystyle Σ\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle Σ\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle Σ\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

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