Index NumbersMCQMTP Sep 24 Series IIQuestion 3938 of 197
All Questions

Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from ₹ 325\displaystyle \text{₹ } 325 to ₹ 500\displaystyle \text{₹ } 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount of:

Options

A₹85
B₹90.91
C₹98.25
DNone of these
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option b₹90.91

All Options:

  • A₹85
  • B₹90.91
  • C₹98.25
  • DNone of these

Ad

Detailed Solution & Explanation

We are given: - Initial CPI (CPI0\displaystyle CPI_0) = 110\displaystyle 110 - Final CPI (CPI1\displaystyle CPI_1) = 200\displaystyle 200 - Initial Salary (S0\displaystyle S_0) = ₹325 - Revised Salary (S1\displaystyle S_1) = ₹500 1. **Calculate Required Salary to maintain standard of living**: Required Salary=S0×CPI1CPI0=325×200110590.91\text{Required Salary} = S_0 \times \frac{CPI_1}{CPI_0} = 325 \times \frac{200}{110} \approx 590.91 2. **Calculate Additional Amount needed**: Additional Amount=590.91500=90.91\text{Additional Amount} = 590.91 - 500 = 90.91 Hence, **Option B** 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