CA Foundation · Quantitative Aptitude · Index Numbers
A price index series with base 2015 = 100 shows 240 for the year 2022. A firm's wage bill in 2022 was ₹4,80,000. What is the real wage bill of 2022 at 2015 prices?
The real wage bill is ₹2,00,000. Deflating divides the nominal figure of ₹4,80,000 by the price index 240 and multiplies by 100, which gives the wage bill at 2015 prices after removing the effect of the price rise.
- A₹1,15,200
- B₹2,00,000Correct
- C₹11,52,000
- D₹1,92,000
Explanation
Real wage bill = nominal value / index × 100 = 4,80,000 / 240 × 100 = ₹2,00,000. Multiplying by 240/100 instead would give ₹11,52,000, which wrongly inflates the value rather than deflating it.
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