PRC-2 · Chapter 9 · Question 21 of 60
A commodity's price was Rs. 4,500 in the base year 20X8 and rose to Rs. 5,400 in 20Y0. What is the simple price relative index for 20Y0?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 120.00
Explanation
The simple price relative is calculated as (Current Price / Base Price) * 100. Here, (5400 / 4500) * 100 equals an index of exactly 120.
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