If the salary of a person in the base year is Rs. 2000 per annum and his…

2021

If the salary of a person in the base year is Rs. 2000 per annum and his current year salary is Rs. 5000. The CPI is 325, then the allowance required to maintain the same standard of living is –

Answer: B. Rs. 1500To maintain the same standard of living, calculate the equivalent salary using CPI. Assuming a base CPI of 100, required salary = (2000 / 100) * 325 = Rs.…

  1. A.

    Rs. 1000

  2. B.

    Rs. 1500

  3. C.

    Rs. 1050

  4. D.

    Rs. 2000

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Correct answer: B

To maintain the same standard of living, calculate the equivalent salary using CPI. Assuming a base CPI of 100, required salary = (2000 / 100) * 325 = Rs. 6500. Allowance needed = Required Salary - Current Salary = 6500 - 5000 = Rs. 1500.

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