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During a certain period the cost of livi...

During a certain period the cost of living index number goes from `150` to `180` and salary of a worker is also raised from `Rs.13000` to `Rs.18000` . The real wage of the employee in the current year is

A

(a) `Rs.10000`

B

(b) `Rs.15000`

C

(c) `Rs.18000`

D

(d) none of these

Text Solution

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The correct Answer is:
To find the real wage of the employee in the current year, we will follow these steps: ### Step 1: Identify the given values - Cost of living index in the base year (C1) = 150 - Cost of living index in the current year (C2) = 180 - Salary of the worker in the base year (S1) = Rs. 13,000 - Salary of the worker in the current year (S2) = Rs. 18,000 ### Step 2: Write the formula for real wage The formula for calculating the real wage in the current year is: \[ \text{Real Wage} = \frac{\text{Salary in Current Year}}{\text{Cost of Living Index in Current Year}} \times 100 \] ### Step 3: Substitute the values into the formula Substituting the values we have: \[ \text{Real Wage} = \frac{S2}{C2} \times 100 = \frac{18000}{180} \times 100 \] ### Step 4: Simplify the calculation Now, we simplify the fraction: \[ \frac{18000}{180} = 100 \] Thus, \[ \text{Real Wage} = 100 \times 100 = 1000 \] ### Step 5: Convert to rupees Since we need the real wage in terms of rupees, we multiply by 10: \[ \text{Real Wage} = Rs. 10,000 \] ### Conclusion The real wage of the employee in the current year is Rs. 10,000.
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