wiz-icon
MyQuestionIcon
MyQuestionIcon
20
You visited us 20 times! Enjoying our articles? Unlock Full Access!
Question

An employee currently earns a salary of Rs.15,000 per year and his salary in the base year of 1990 is Rs.3,000 per year. What should be the raise in his salary in order to maintain the same standard of living with time if the CPI today is 500?


A

0

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B

Rs.15,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

Rs.5,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A

0


Given, CPI = 500
Current Salary = Rs.15,000
Base salary = Rs.3,000
Since, CPI has become 5 times its value (100) at the base year of 1990.
Therefore, the salary should be commensurate i.e. it should also be 5 times of his salary in 1990.
S01 = 5×3,000 = Rs.15,000
Required increase in salary = 15,000 – 15,000 = Rs. 0
No raise is required.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Types of Index Numbers
STATISTICS
Watch in App
Join BYJU'S Learning Program
CrossIcon