CA Foundation · Quantitative Aptitude · Index Numbers
A firm's sales were ₹6,00,000 in 2022 and ₹9,00,000 in 2024. The price index (base 2020 = 100) was 120 in 2022 and 150 in 2024. What is the percentage change in real sales between 2022 and 2024?
Real sales rose by 20%. Deflating 2022 sales gives ₹5,00,000 and deflating 2024 sales gives ₹6,00,000 at 2020 prices. The increase of ₹1,00,000 on ₹5,00,000 is 20%, much lower than the 50% rise in money sales.
- A20% increaseCorrect
- B50% increase
- C20% decrease
- D25% increase
Explanation
Real sales 2022 = 6,00,000/1.20 = ₹5,00,000. Real sales 2024 = 9,00,000/1.50 = ₹6,00,000. Increase = 1,00,000/5,00,000 = 20%. The 50% option is the change in money sales, which ignores deflation.
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