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When the year 2000 is taken as the base ...

When the year 2000 is taken as the base year, the cost of living index is increased by 20% from 2006 to 2007. If the total expenditure in the base year is Rs. 20,000, and the cost of living index of 2007 is 210, then the total expenditures (in Rs.) in the years 2006 and 2007 are____.

A

35,000, 42,000

B

30,000, 40, 000

C

35,000, 45, 000

D

30,000, 42,000

Text Solution

Verified by Experts

The correct Answer is:
A
(i) Cost of living index for the year 2006 `=210xx(100)/(120)`, where the base year's value is 100.
(ii) Use formula to find total expenditures in 2006 and 2007.
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