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Question
Solve the following problem :
The cost of living index number for year 2000 and 2003 are 150 and 210 respectively. A person earns ₹ 13,500 per month in the year 2000. What should be his monthly earning in the year 2003 in order to maintain the same standard of living?
Solution
For the year 2000,
CLI = 150 and income = ₹ 13,500
Now, Reall Income = `"Income"/"CLI" xx 100`
= `(13500)/(150) xx 100`
= 90 x 100
= 9,000
Real income = ₹ 9,000
For the year 2003,
CLI = 210
If standard of living is to be maintained, real income in the year 2003 should also be ₹ 9,000.
Real income = `"income"/"CLI" xx 100`
∴ 9000 = `"Income"/"CLI" xx 100`
∴ Income = `(9000 xx 210)/(100)`
= 90 xx 210
= 18,900
∴ In order to maintain the same standard of living as in the year 2000, income in 2003 should be ₹ 18,900.
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RELATED QUESTIONS
The Cost of Living Index Number for years 1995 and 1999 are 140 and 200 respectively. A person earns ₹ 11,200 per month in the year 1995. What should be his monthly earnings in the year 1999 in order to maintain his standard of living as in the year 1995?
Solve the following problem :
Calculate the cost of living number for the following data.
| Group | Base Year | Current Year | |
| Price p0 |
Quantity q0 |
Price p1 |
|
| Food | 150 | 13 | 160 |
| Clothing | 170 | 18 | 150 |
| Fuel and Lighting | 175 | 10 | 190 |
| House Rent | 200 | 12 | 210 |
| Miscellaneous | 210 | 15 | 260 |
State whether the following statement is True or False:
Purchasing power of money = `1/"Cost of Living Index Number"`
The Cost of Living Index Numbers for years 2003 and 2008 are 150 and 200 respectively. A person earned ₹ 18,000 per month in year 2003. What should be his earning per month in year 2008, so as to maintain same standard of living as 2003?
