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

Options

A1,08,000\displaystyle 1,08,000 per annum
B72,000\displaystyle 72,000 per annum
C64,000\displaystyle 64,000 per annum
DNone of these
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Correct Answer

Option a1,08,000\displaystyle 1,08,000 per annum

All Options:

  • A1,08,000\displaystyle 1,08,000 per annum
  • B72,000\displaystyle 72,000 per annum
  • C64,000\displaystyle 64,000 per annum
  • DNone of these

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Detailed Solution & Explanation

We are given: - CPI increases by 80%\displaystyle 80\% relative to the base period. This means the new CPI is: New CPI=100+80=180\text{New CPI} = 100 + 80 = 180 - Base salary = 60,000\displaystyle 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\text{New Salary} = \text{Base Salary} \times \frac{\text{New CPI}}{100} = 60000 \times \frac{180}{100} = 1,08,000 \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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