The total expenditure of a family on certain quantities of different household commodities in 1985 was Rs 6,000 and the cost of living index of 1996 on the basis of 1985 was 172.50. Then how much did the family spend in 1996 on the same quantities of commodities?

Rs 11,500

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Rs 11,000

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Rs 10,350

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Rs 10,500

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Solution

The correct option is C Rs 10,350
Let the cost of living index of 1985 be 100
In1985 cost of living index was 100 and it rose to 172.50 in1996
in 1985 total expenditure was 6000 and will rise to $= \frac{172.5}{100} \times 6000 = 10350$ in 1996
Family will spend Rs10350 in 1996 on same commodities.

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The total expenditure of a family on certain quantities of different household commodities in 1985 was Rs 6,000 and the cost of living index of 1996 on the basis of 1985 was 172.50. Then how much did the family spend in 1996 on the same quantities of commodities?

The correct option is C Rs 10,350Let the cost of living index of 1985 be 100In1985 cost of living index was 100 and it rose to 172.50 in1996in 1985 total expenditure was 6000 and will rise to =172.5100×6000=10350 in 1996Family will spend Rs10350 in 1996 on same commodities.

The correct option is C Rs 10,350
Let the cost of living index of 1985 be 100
In1985 cost of living index was 100 and it rose to 172.50 in1996
in 1985 total expenditure was 6000 and will rise to $= \frac{172.5}{100} \times 6000 = 10350$ in 1996
Family will spend Rs10350 in 1996 on same commodities.