CA Foundation · Quantitative Aptitude · Index Numbers
The Consumer Price Index (base 2015 = 100) is 250 for 2024. A worker's salary was ₹30,000 in 2015. Which monthly salary in 2024 would keep his real income unchanged, and what does a salary of ₹60,000 imply about his real income relative to 2015?
To keep real income unchanged, the salary must be ₹75,000, found by 30,000 × 250/100. A salary of ₹60,000 deflates to ₹24,000 in 2015 prices, against the original ₹30,000, so real income has fallen by 20%.
- A₹75,000; real income has fallen by 20%Correct
- B₹75,000; real income has risen by 20%
- C₹60,000; real income unchanged
- D₹82,500; real income has fallen by 20%
Explanation
Salary needed = 30,000 × 250/100 = ₹75,000. Real income in 2024 on ₹60,000 = 60,000 × 100/250 = ₹24,000 against ₹30,000 in 2015, a fall of 6,000/30,000 = 20%. Saying it has risen would ignore the deflation step.
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