Question

The total expenditure of a family in $1920$ is $8,000.$ The cost of living index for the year $1920$ taking $1910$ as the base year is $160$. Then, the expenditure of the family in the year $1910$ was

• A. $3000$
• B. $4000$
• C. $5000$
• D. $6000$

Answer 1

The correct option is C $5000$

Given that the expenditure of a family in $1920=8000$

Suppose that the expenditure of a family in $1910=x$

Cost of living $=160$

We know that,

Cost of living $=\frac{\text{The expenditure of a family in 1920}}{\text{The expenditure of a family in 1910}}\times 100$

$160=\frac{8000}{x}\times 100$

$x=\frac{8000}{160}\times 100$

$x=50\times 100$

$x=5000$