Question 22 of 45beginner🔧 ApplyNumerical2 marks

The price of 1 kg of rice was ₹38 in 2024. It is ₹42 in 2025. What is the rate of inflation? (Inflation is the percentage increase in prices.)

Correct Answer

Given: Price in 2024 = ₹38 Price in 2025 = ₹42

Formula: Inflation = (Price increase/Original price) × 100

Calculation: Increase = ₹42 - ₹38 = ₹4 Inflation rate = (4/38) × 100 = 10.53%

Answer: Rate of inflation = 10.53%

Exercise: Figure it Out (Section 3) | Q: 5 | (Page Page 20)
For More Understanding

Explanation

The chapter defines inflation as the percentage increase in prices. The formula is: Inflation = (Price increase/Original price) × 100.

Solution Steps

  1. Price in 2024 = ₹38

  2. Price in 2025 = ₹42

  3. Increase = 42 - 38 = ₹4

  4. Inflation rate = (4/38) × 100 = 10.53%

PreviousNext