The wholesale price index of sugar in 2008 compared to 2004 is 140. If the cost of sugar was ₹15 per kg in 2004, then the cost of sugar in 2008 is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹21 per kg
$\text{Price index} = \frac{\text{Current price}}{\text{Base price}} \times 100$
$140 = \frac{\text{Price in 2008}}{15} \times 100$
$\frac{\text{Price in 2008}}{15} = 1.4$
$\text{Price in 2008} = 15 \times 1.4 = 21$
The cost of sugar in 2008 is ₹21 per kg.