CA Foundation · Quantitative Aptitude · Index Numbers
A price index series with base 2018 = 100 reads 120 for 2019, 150 for 2020 and 180 for 2021. If the base is shifted to 2020 (2020 = 100), what is the index for 2021?
The 2021 index becomes 120. When the base shifts to 2020, every old index is divided by the old 2020 index of 150 and multiplied by 100. So 180 divided by 150 times 100 gives 120, meaning prices are 20 percent above 2020.
- A30
- B150
- C120Correct
- D180
Explanation
To shift the base, divide each index by the index of the new base year and multiply by 100. For 2021: 180 ÷ 150 × 100 = 120. The value 30 is just the difference of the old indices, which is not a valid shift, and 180 is the unchanged old value.
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