The price index of sugar in 2019 compared to 2016 is 120. If the cost of sugar was ₹25 per kg in 2016 then the cost in 2019 is : |
₹30 per kg ₹35 per kg ₹40 per kg ₹42 per kg |
₹30 per kg |
Price index formula $\text{Price Index}=\frac{\text{Price in current year}}{\text{Price in base year}}\times100$ Given Price index $=120$ Price in 2016 $=25$ $120=\frac{\text{Price in 2019}}{25}\times100$ $\frac{\text{Price in 2019}}{25}=\frac{120}{100}$ $\text{Price in 2019}=25\times1.2$ $=30$ The cost of sugar in 2019 is ₹30 per kg. |