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Asked by Thamaraikannan Last Modified
Answer Base year salary = Rs. 4000, Base year index = 100 (assumption)
Salary required in the current year to maintain the same standard of living of base year
= Base Year Salary xCPI of Current Year/CPI of Base Year = 4000 x400/100 =Rs 16000
Current year salary = Rs. 16000
The increase in current salary required = 16000 - 6000 = Rs. 10000
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