The price index of a commodity in 2018 relative to 2015 is 125, If the price of the commodity is Rs. 20/kg is 2015, then price in 2018 is :

Options

A. 20
B. 145
C. 25
D. 125

Answer

To find the price of the commodity in 2018 based on the given price index and the price in 2015, we can follow these steps:

### Step 1: Understand the given information
- Price index in 2018 relative to 2015 (P01) = 125
- Price of the commodity in 2015 (P0) = Rs. 20/kg

### Step 2: Use the formula for price index
The formula for the price index is given by:
\[ P01 = \frac{P1}{P0} \times 100 \]
where:
- \(P1\) = Price in 2018
- \(P0\) = Price in 2015

### Step 3: Substitute the known values into the formula
Substituting the known values into the formula, we have:
\[ 125 = \frac{P1}{20} \times 100 \]

### Step 4: Rearrange the equation to solve for \(P1\)
To isolate \(P1\), we can rearrange the equation:
\[ P1 = \frac{125 \times 20}{100} \]

### Step 5: Calculate \(P1\)
Now, we can perform the calculation:
\[ P1 = \frac{125 \times 20}{100} = \frac{2500}{100} = 25 \]

### Step 6: Conclusion
Thus, the price of the commodity in 2018 is:
\[ \text{Price in 2018} = Rs. 25/kg \]