Index NumbersMTP May 19 Series II/ MTP Sep 24 IIQuestion 3834 of 167

The formula for conversion to current value

ADeflated value = $\frac{\text{Price Index of the current year}}{\text{previous value}}$

BDeflated value = $\frac{\text{current value}}{\text{Price Index of current year}}$

CDeflated value = $\frac{\text{Price Index of the previous year}}{\text{previous value}}$

DDeflated value = $\frac{\text{Price Index of the previous year}}{\text{previous value}}$

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Correct Answer

✅ Option c — Deflated value = $\frac{\text{Price Index of the previous year}}{\text{previous value}}$

ADeflated value = $\frac{\text{Price Index of the current year}}{\text{previous value}}$
BDeflated value = $\frac{\text{current value}}{\text{Price Index of current year}}$
CDeflated value = $\frac{\text{Price Index of the previous year}}{\text{previous value}}$
DDeflated value = $\frac{\text{Price Index of the previous year}}{\text{previous value}}$

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.

Exam Strategy Tip

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

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