The price index of a commodity is 225. The percentage increase in price of the commodity in current year as compared to base year is

Options

A. `25%`
B. ` 225%`
C. ` 125 % `
D. None of these

Answer

To find the percentage increase in the price of a commodity based on the price index, we can follow these steps:

### Step-by-Step Solution:

1. **Understand the Price Index**: The price index for the base year is typically set at 100. In this case, the price index for the current year is given as 225.

2. **Calculate the Increase in Price Index**:
\[ \text{Increase in Price Index} = \text{Current Year Price Index} - \text{Base Year Price Index} \]
Substituting the values:
\[ \text{Increase in Price Index} = 225 - 100 = 125 \]

3. **Calculate the Percentage Increase**:
The percentage increase can be calculated using the formula:
\[ \text{Percentage Increase} = \left( \frac{\text{Increase in Price Index}}{\text{Base Year Price Index}} \right) \times 100 \]
Substituting the values:
\[ \text{Percentage Increase} = \left( \frac{125}{100} \right) \times 100 = 125\% \]

4. **Conclusion**: The percentage increase in the price of the commodity in the current year as compared to the base year is **125%**.

### Final Answer:
The percentage increase in price of the commodity in the current year as compared to the base year is **125%**.

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