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?

    A 540 Correct Answer Incorrect Answer
    B 640 Correct Answer Incorrect Answer
    C 1440 Correct Answer Incorrect Answer
    D 17280 Correct Answer Incorrect Answer
    E 740 Correct Answer Incorrect Answer

    Solution

    Cost of living tndex = consumer price Income income in 1980 = Rs 900/ Month Total Tncome (Annual)  = 900 `xx12`                                       = Rs 10800 `P_(8084) = 160` ` ` Extra income the worker has earned               = 1440 - 900              = 540/ Month

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