Question

The consumer price index in 1990 increases by 80% as compared to the base 1980. A person in 1980 getting Rs. 60,000 per annum should now get _____.

• A. Rs. 1,08,000 per annum
• B. Rs. 72,000 per annum
• C. Rs. 54,000 per annum
• D. none of the above.

Answer 1

Answer: (A)

Rs. 1,08,000 per annum

Since the consumer price index has been increased by 80% the income of the person should also get increase by 80%. Calculate the 80% of its initial income and add it to Rs. 60,000.