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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these?
Most Upvoted Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
Solution:
Given,
Index number of prices at a place in 1994 = 250
Base year = 1984
To find: Average increase in prices
Formula:
Index number = (Price of current year / Price of base year) × 100
Calculation:
Let the price of base year = Rs. x
Price of current year = ?
250 = (Price of current year / x) × 100
Price of current year = (250/100) × x
Price of current year = 2.5x
Therefore, the price of current year is 2.5 times the price of base year.
Average increase in prices = ((Price of current year - Price of base year) / Price of base year) × 100
= ((2.5x - x) / x) × 100
= 1.5x / x × 100
= 150%
Hence, the answer is option (b) 150%.
Conclusion:
The average increase in prices from 1984 to 1994 is 150%.
Given,
Index number of prices at a place in 1994 = 250
Base year = 1984
To find: Average increase in prices
Formula:
Index number = (Price of current year / Price of base year) × 100
Calculation:
Let the price of base year = Rs. x
Price of current year = ?
250 = (Price of current year / x) × 100
Price of current year = (250/100) × x
Price of current year = 2.5x
Therefore, the price of current year is 2.5 times the price of base year.
Average increase in prices = ((Price of current year - Price of base year) / Price of base year) × 100
= ((2.5x - x) / x) × 100
= 1.5x / x × 100
= 150%
Hence, the answer is option (b) 150%.
Conclusion:
The average increase in prices from 1984 to 1994 is 150%.
Community Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
B. 150% is the correct option .
As The base year index number (1984) will be 100 and current year(1994) is 250 So increase on an average is 150% .
As The base year index number (1984) will be 100 and current year(1994) is 250 So increase on an average is 150% .
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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these?
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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these? 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 If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these?.
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these? 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 If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250 % (b) 150 % (c) 350 % (d) None of these?.
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