CIMA BA1 · Chapter 10 · Question 5 of 10
An index series has Year 1 = 100. The index stands at 125 in Year 4 and 150 in Year 7. If the series is rebased so that Year 4 = 100, what is the index for Year 7?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 120
Explanation
Rebased index = old index for the year / old index for the new base year x 100 = 150 / 125 x 100 = 120.
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