A WORKER EARNED 900 PER MONTH IN 1980.THE COST OF LIVING INDEX INCREASED BY 60% BETWEEN 1980 AND 1984.HOW MUCH EXTRA INCOME SHOULD THE WORKER HAVE EARNED IN 1984 SO THAT HE COULD BUY SAME QUANTITIES AS IN 1980.

Dear Student,

Given:
Monthly income in 1980 = Rs 900
Increase on CPI = 60%
Extra income=60%×Monthly income in 1980                        =60100×900=Rs 540
Thus, the worker should have earned Rs 540 per month in 1984 in order to buy same quantities as in 1980.

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