CA Foundation · Quantitative Aptitude · Index Numbers
An employee of a Pune firm earned ₹33,000 per month in 2024. The consumer price index for 2024 is 150 with base year 2018 = 100. What is the employee's real monthly wage in 2024, expressed in base-year (2018) rupees?
The real wage is ₹22,000 in base-year rupees. Real wage is found by deflating the money wage by the price index: ₹33,000 divided by 150, multiplied by 100. Multiplying by the index instead would wrongly inflate the wage to ₹49,500.
- A₹49,500
- B₹23,100
- C₹22,000Correct
- D₹33,000
Explanation
Real wage = (money wage / CPI) × 100 = (33,000 / 150) × 100 = ₹22,000. Check: 22,000 × 1.5 = 33,000. The figure ₹49,500 comes from multiplying by the index instead of dividing, and ₹23,100 comes from wrongly reducing the wage by 30%.
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