CA Foundation · Quantitative Aptitude · Index Numbers
Using the CPI (base 2015 = 100), Meera's money wage was ₹30,000 in 2015. In 2024 the CPI is 160 and her real wage index (base 2015 = 100) is 125. What is her money wage in 2024?
Her money wage in 2024 is ₹60,000. The money wage index equals the real wage index times CPI over 100, which is 125 × 1.6 = 200. So the wage doubled from ₹30,000 to ₹60,000, while real purchasing power rose only 25%.
- A₹37,500
- B₹48,000
- C₹60,000Correct
- D₹75,000
Explanation
Real wage index = (money wage index/CPI) × 100, so money wage index = 125 × 160/100 = 200. Money wage = 30,000 × 200/100 = ₹60,000. Check: 60,000/1.6 = 37,500 = 30,000 × 1.25. ₹37,500 is wrong because it is the real wage, not the money wage.
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