CA Foundation · Quantitative Aptitude · Index Numbers
A deflated series is built by dividing nominal values by a price index. A firm's sales were ₹80 lakh in 2019 (base year, index 100) and ₹132 lakh in 2024, when the price index (base 2019 = 100) was 120. What is the percentage increase in real sales over 2019?
None of the listed options matches; real sales rose 37.5%. Deflating ₹132 lakh by 120/100 gives ₹110 lakh at 2019 prices, and 110 against 80 is an increase of 37.5%.
- A65%
- B50%
- C10%Correct
- D32%
Explanation
Real sales in 2024 = 132/120 × 100 = ₹110 lakh at 2019 prices. Increase over ₹80 lakh would be 30/80 = 37.5%, so recheck: 110 vs 80 gives 37.5%, not among the options. Hence compute correctly with the data: 110/80 = 1.375, giving 37.5%.
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