During a certain period the cost of living index number goes up from 110 to 200 and the
salary of a worker is also raised from Rs. 325 to Rs. 500. Does the worker really gain ?
Give reasons for your answer.
Answers
Answer:
Explanation:
Original cost of living = 110 RS
New cost of living = 200 rs
Percentage of increase in the cost of living = ( 200 × 100 ÷ 110 ) - 100
= ( 2000 ÷ 11 ) - 100
= 181.8181 - 100
= 81.8181 %
Original salary = 325 RS
New salary = 500 RS
Percentage of increase in the salary = ( 500 × 100 ÷ 325 ) - 100
= ( 50000 ÷ 325 ) - 100
= 153.8461 - 100
= 53.8461 %
Though the workers salary increased by 175 RS and cost of living increased by 90 RS , the workers did not actually gain more because cost of living increased by 81.8181 % whereas their salary increased by only 53.8461% .