CA Foundation · Quantitative Aptitude · Index Numbers
A person's money income rose from ₹30,000 in 2018 (base year) to ₹48,000 in 2024. The consumer price index for 2024 is 160 with 2018 = 100. What is the person's real income in 2024 in terms of base year rupees?
Real income in 2024 is ₹30,000 in base-year rupees. It is obtained by deflating money income: 48,000 divided by 160 and multiplied by 100. Since this equals the 2018 income, the rise in money income was fully offset by higher prices.
- A₹48,000
- B₹76,800
- C₹30,000Correct
- D₹33,000
Explanation
Real income = money income ÷ price index × 100 = 48,000 × 100/160 = ₹30,000. Thus real income is unchanged. The option ₹76,800 multiplies instead of dividing by the index.
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