CA Foundation · Quantitative Aptitude · Index Numbers
A cost of living index (base 2010 = 100) is 400 in 2024 for a city. A clerk earned ₹15,000 in 2010 and now earns ₹50,000. By what amount, in rupees per month, should his 2024 salary rise to maintain his 2010 standard of living?
The clerk needs 15,000 × 400/100 = ₹60,000 to keep his 2010 standard of living. He earns ₹50,000, so the increase required is ₹10,000 per month. The shortfall is measured against the current salary, not the base salary.
- A₹10,000Correct
- B₹60,000
- C₹45,000
- D₹35,000
Explanation
Required salary = 15,000 × 400/100 = ₹60,000. Present salary is ₹50,000, so the rise needed is 60,000 − 50,000 = ₹10,000. Choosing ₹60,000 gives the required salary not the increase, and ₹45,000 results from 60,000 − 15,000, using the wrong base.
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