Index NumbersMCQMTP Sep 24 Series IIQuestion 3937 of 197
All Questions

In 1980, the net monthly income of the employee was ₹ 800/\displaystyle \text{₹ } 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated. The additional D. A. to be paid to the employee is

Options

A₹ 175/\displaystyle \text{₹ } 175/-
B₹ 185/\displaystyle \text{₹ } 185/-
C₹ 200/\displaystyle \text{₹ } 200/-
D₹ 125/\displaystyle \text{₹ } 125/-
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option c₹ 200/\displaystyle \text{₹ } 200/-

All Options:

  • A₹ 175/\displaystyle \text{₹ } 175/-
  • B₹ 185/\displaystyle \text{₹ } 185/-
  • C₹ 200/\displaystyle \text{₹ } 200/-
  • D₹ 125/\displaystyle \text{₹ } 125/-

Ad

Detailed Solution & Explanation

We are given: - Salary in 1980 = ₹800 - CPI in 1980 = 160\displaystyle 160 - CPI in 1984 = 200\displaystyle 200 To maintain the same purchasing power, the salary in 1984 should be: Required Salary=800×200160=1000\text{Required Salary} = 800 \times \frac{200}{160} = 1000 The additional Dearness Allowance (DA) to be paid is: Additional DA=1000800=200\text{Additional DA} = 1000 - 800 = 200 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.

Key Concepts to Understand

Related Comparison Tables

More Questions from Index Numbers

Ready to Master Index Numbers?

Practice all 197 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free