The formula for conversion to current value

CA Foundation · Quantitative Aptitude · MTP · September 2024
The formula for conversion to current value
(A) A. Deflated value = Price Index of the current year / previous value
(B) B. Deflated value = Current Value / Price Index of the current year
(C) C. Deflated value = Price Index of the previous year / previous value
(D) D. Deflated value = Current Value / Price Index of base year

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Deflated value = Current Value / Price Index of the current year

Topics: Part-C: Statistics

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