Question

Taking 2004 as base year, construct the index numbers of the years 2005 and 2009.

Year	2004	2005	2006	2007	2008	2009
Prices (₹)	10	14	16	20	22	24

Answer 1

Year	Price
2004	10
2005	$\boxed{14}$
2006	16
2007	20
2008	22
2009	$\boxed{24}$

Since, base year is given as 2004
∴ P₀ = 10
Index number for year 2005

Here, P₁ = 14
$P_{01}=\frac{P_1}{P_0}\times 100=\frac{14}{10}\times 100=140$

Index number for year 2009
Here, P₁ = 24
Substituting the values in the formula
${\mathrm{P}}_{01}=\frac{24}{10}\times 100=240$