During a certain period, the cost of living index number goes from 110 to 200 and the salary of a worker is also raised from ₹3630 to ₹5000. By how much amount he really gains or loses in real terms.

₹ 800 lose

The correct answer is Option (4) → ₹ 800 lose

$\text{Real wage factor} = \frac{\text{New salary}}{\text{Old salary}} \times \frac{\text{Old index}}{\text{New index}}$

$= \frac{5000}{3630} \times \frac{110}{200}$

$= 1.377 \times 0.55$

$\approx 0.757$

$\text{Real income} = 3630 \times 0.757 \approx 2748$

$\text{Loss} = 3630 - 2748 = 882$

The worker incurs a loss of ₹882 in real terms.