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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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o
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Consumer price index number goes up from 110 to 200 and the Salary of ...
Its 100 shortcut method:- years wages index no.1980 330 1101982 500 200 sol:-cross multiply 330×200/110 (not included recent year wages)=600-500 (recent year wages) =100 answer
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Consumer price index number goes up from 110 to 200 and the Salary of ...
**Understanding the Consumer Price Index (CPI)**
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is commonly used to gauge inflation and calculate the purchasing power of a currency. An increase in the CPI indicates a rise in the overall price level of goods and services.
**The Situation**
In this scenario, the CPI number has gone up from 110 to 200. This means that there has been a significant increase in the average prices of goods and services. Additionally, the salary of a worker has also been raised from Rs. 330 to Rs. 500.
**Calculating the Real Salary**
To determine the real salary of the worker and understand if they can maintain their previous standard of living, we need to account for the change in the CPI.
1. **Calculate the CPI Inflation Rate**
- CPI Inflation Rate = ((New CPI - Old CPI) / Old CPI) * 100
- In this case, the CPI inflation rate would be ((200 - 110) / 110) * 100 = 81.82%
2. **Adjust the Salary for Inflation**
- Adjusted Salary = (1 + CPI Inflation Rate) * Old Salary
- Adjusted Salary = (1 + 0.8182) * Rs. 330 = Rs. 597.73 (approx.)
**Determining the Additional Amount**
To maintain the worker's previous standard of living, they should receive an additional amount equal to the difference between the adjusted salary and the new salary.
- Additional Amount = Adjusted Salary - New Salary
- Additional Amount = Rs. 597.73 - Rs. 500
- Additional Amount = Rs. 97.73 (approx.)
Therefore, to maintain their previous standard of living in real terms, the worker should receive an additional amount of approximately Rs. 97.73.
**Conclusion**
The increase in the Consumer Price Index from 110 to 200 indicates a significant rise in the average prices of goods and services. To maintain the worker's previous standard of living in real terms, their salary needs to be adjusted for inflation. By calculating the CPI inflation rate and adjusting the salary accordingly, we find that the worker's salary should be increased by approximately Rs. 97.73. This additional amount will help the worker offset the increased cost of living and maintain their previous purchasing power.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is commonly used to gauge inflation and calculate the purchasing power of a currency. An increase in the CPI indicates a rise in the overall price level of goods and services.
**The Situation**
In this scenario, the CPI number has gone up from 110 to 200. This means that there has been a significant increase in the average prices of goods and services. Additionally, the salary of a worker has also been raised from Rs. 330 to Rs. 500.
**Calculating the Real Salary**
To determine the real salary of the worker and understand if they can maintain their previous standard of living, we need to account for the change in the CPI.
1. **Calculate the CPI Inflation Rate**
- CPI Inflation Rate = ((New CPI - Old CPI) / Old CPI) * 100
- In this case, the CPI inflation rate would be ((200 - 110) / 110) * 100 = 81.82%
2. **Adjust the Salary for Inflation**
- Adjusted Salary = (1 + CPI Inflation Rate) * Old Salary
- Adjusted Salary = (1 + 0.8182) * Rs. 330 = Rs. 597.73 (approx.)
**Determining the Additional Amount**
To maintain the worker's previous standard of living, they should receive an additional amount equal to the difference between the adjusted salary and the new salary.
- Additional Amount = Adjusted Salary - New Salary
- Additional Amount = Rs. 597.73 - Rs. 500
- Additional Amount = Rs. 97.73 (approx.)
Therefore, to maintain their previous standard of living in real terms, the worker should receive an additional amount of approximately Rs. 97.73.
**Conclusion**
The increase in the Consumer Price Index from 110 to 200 indicates a significant rise in the average prices of goods and services. To maintain the worker's previous standard of living in real terms, their salary needs to be adjusted for inflation. By calculating the CPI inflation rate and adjusting the salary accordingly, we find that the worker's salary should be increased by approximately Rs. 97.73. This additional amount will help the worker offset the increased cost of living and maintain their previous purchasing power.
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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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o
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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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o for Quant 2025 is part of Quant preparation. The Question and answers have been prepared according to the Quant 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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o covers all topics & solutions for Quant 2025 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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o.
Consumer price index number goes up from 110 to 200 and the Salary of a worker is also raised from Rs. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o for Quant 2025 is part of Quant preparation. The Question and answers have been prepared according to the Quant 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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o covers all topics & solutions for Quant 2025 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. 330 to Rs. 500. Therefore, in real terms, to maintain his previous standard of living he should get an additional amount o.
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