Question

↵Taking 2004 as base year, construct the index numbers of the years 2014 and 2018.

Year	2004	2014	2015	2016	2017	2018
Prices (₹)	10	14	16	20	22	24

Answer 1

Year	Price
2004	10
2014	$\boxed{14}$
2015	16
2016	20
2017	22
2018	$\boxed{24}$

Since, base year is given as 2004
∴ P₀ = 10
Index number for year 2014

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

Index number for year 2018
Here, P₁ = 24
Substituting the values in the formula
${\mathrm{P}}_{01}=\frac{24}{10}\times 100=240$