Index NumbersMCQMTP March 21Question 3902 of 197
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For year 2015\displaystyle 2015, price index was 267%\displaystyle 267\% with base year 2005\displaystyle 2005. The percentage increase in price index over base year 2005\displaystyle 2005 is:

Options

A267%\displaystyle 267\%
B67%\displaystyle 67\%
C167%\displaystyle 167\%
DNone of these
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Correct Answer

Option c167%\displaystyle 167\%

All Options:

  • A267%\displaystyle 267\%
  • B67%\displaystyle 67\%
  • C167%\displaystyle 167\%
  • DNone of these

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Detailed Solution & Explanation

We are given: - Price Index in 2015 = 267%\displaystyle 267\% (with base year 2005 as 100%\displaystyle 100\%) The percentage increase in the price index over the base year is: Percentage Increase=267%100%=167%\text{Percentage Increase} = 267\% - 100\% = 167\% *(Note: Although some answer keys incorrectly state 267% by confusing the index level with the increase, mathematically, the increase over the base period is exactly 167%, which corresponds to Option C).* Hence, **Option C** 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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