Question
A worker earned Rs. 900 per month in 1980. The
cost-of-living index increased by 60% between 1980 and 1984. How much extra income should the worker have earned in 1984 so that he could buy the same quantities as in 1980?Solution
Cost of living tndex = consumer price Income income in 1980 = Rs 900/ Month Total Tncome (Annual)Â = 900Â `xx12` Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â = Rs 10800 `P_(8084) = 160` ` ` 
Extra income the worker has earned        = 1440 - 900        = 540/ Month
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