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Consumer price index number goes up from 110 to 200 and the salary of worker is also raised from 325 to 500 therefore in a real terms to maintain his previous standard of living he should get the additional amount of?
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Consumer price index number goes up from 110 to 200 and the salary of ...
Solution:
To maintain his previous standard of living, the worker needs to get an additional amount that compensates for the increase in the CPI. This can be calculated using the following steps:

Step 1: Calculate the inflation rate
Inflation rate can be calculated using the formula: (New CPI - Old CPI) / Old CPI x 100
In this case, the inflation rate is: (200 - 110) / 110 x 100 = 81.82%

Step 2: Calculate the real salary increase needed
The real salary increase needed can be calculated using the formula: Current Salary x Inflation Rate
In this case, the real salary increase needed is: 325 x 81.82% = 265.45

Step 3: Calculate the new salary
The new salary should be the current salary plus the real salary increase needed. In this case, the new salary should be: 325 + 265.45 = 590.45

Therefore, to maintain his previous standard of living, the worker should get an additional amount of 265.45. This would bring his salary to 590.45, which would compensate for the increase in the CPI and allow him to maintain his previous standard of living.
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Consumer price index number goes up from 110 to 200 and the salary of ...
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Consumer price index number goes up from 110 to 200 and the salary of worker is also raised from 325 to 500 therefore in a real terms to maintain his previous standard of living he should get the additional amount of?
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Consumer price index number goes up from 110 to 200 and the salary of worker is also raised from 325 to 500 therefore in a real terms to maintain his previous standard of living he should get the additional amount of? 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 worker is also raised from 325 to 500 therefore in a real terms to maintain his previous standard of living he should get the additional amount of? 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 worker is also raised from 325 to 500 therefore in a real terms to maintain his previous standard of living he should get the additional amount of?.
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