Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

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 :

Options:

₹30 per kg

₹35 per kg

₹40 per kg

₹42 per kg

Correct Answer:

₹30 per kg

Explanation:

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.