Multiple choice

The consumer price index in 1990 increases by 80% as compared to the base 1980. A person in 1980 getting Rs. 60,000 per annum should now get _____.

  1. Rs. 1,08,000 per annum

  2. Rs. 72,000 per annum

  3. Rs. 54,000 per annum

  4. none of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An 80% increase means the new salary should be 180% of the original. 1.8 * 60,000 = 108,000.

AI explanation

To maintain the exact same purchasing power, the salary must increase by the same percentage as the consumer price index. The required new salary is calculated by adding 80% of the original 60,000 rupees salary to the original salary. This calculation is 60,000 + (0.80 times 60,000) = 108,000. The person should get Rs. 1,08,000 per annum.

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