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Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 325 to Rs. 500. Therefore, in real terms he has not gain, to maintain his previous standard of living he should get an additional amount is :
  • a)
    Rs. 85
  • b)
    Rs.90.91
  • c)
    Rs. 98.25
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consumer price index number goes up from 110 to 200 and the Salary of ...
Expenditure =325/110*100=295.4545
                      500/200*100=250
difference between them = 45.4545
additional amt= 45.4545*2
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Community Answer
Consumer price index number goes up from 110 to 200 and the Salary of ...
Calculation:

To calculate the real increase in salary, we need to adjust the given salary for inflation using the CPI numbers. We can use the following formula:

Adjusted Salary = (Salary x Current CPI) / Base CPI

Where,

Salary = Rs. 325 (Base Salary)
Current CPI = 200 (New CPI)
Base CPI = 110 (Old CPI)

Plugging in the values, we get:

Adjusted Salary = (325 x 200) / 110 = Rs. 590.91

Therefore, the real increase in salary is Rs. 590.91 - Rs. 325 = Rs. 265.91

To maintain his previous standard of living, the worker needs an additional amount equal to the real increase in salary, which is Rs. 265.91

The options given are not matching with this calculation. However, the closest option is option B, which is Rs. 90.91. This is not the correct answer, but it is the closest option.
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Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 325 to Rs. 500. Therefore, in real terms he has not gain, to maintain his previous standard of living he should get an additional amount is :a)Rs. 85b)Rs.90.91c)Rs. 98.25d)None of theseCorrect answer is option 'B'. Can you explain this answer?
Question Description
Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 325 to Rs. 500. Therefore, in real terms he has not gain, to maintain his previous standard of living he should get an additional amount is :a)Rs. 85b)Rs.90.91c)Rs. 98.25d)None of theseCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 325 to Rs. 500. Therefore, in real terms he has not gain, to maintain his previous standard of living he should get an additional amount is :a)Rs. 85b)Rs.90.91c)Rs. 98.25d)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 325 to Rs. 500. Therefore, in real terms he has not gain, to maintain his previous standard of living he should get an additional amount is :a)Rs. 85b)Rs.90.91c)Rs. 98.25d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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