1. Example 1
Price Index %
P 125 40
Q x 20
R 110 10
S 130 30
i) Price of S 2004 = ?
Price of S 2007 = RM44.85
2004 2007
S 44.85
100 130
130 x s =
S =
44.85 x 100
130
= RM 34.50
ii) Price Index of P 2007,2000 = ?
Price Index P2004 ,2000 = 120
𝐼 2004,2000=
𝑄2004
𝑄2000
x 100
120=
34.50
𝑄2000
x100
𝑄 2000 = RM28.75
𝐼 2007,2000 =
𝑄2007
𝑄2000
x 100
=
44.85
28.75
x 100
= 156
b) Composite Index 2007,2004 = 125
125=
( 125 x 40) + ( 20 × 𝑥 ) + ( 110x 10 ) + ( 130 x 30)
100
X = 125
iii) Price cake 2004= ?
CorrespondingPrice 2007 = Rm40
2004 2007
P RM40
100 125
P =
40 𝑥 100
125
= RM32
2. Example 2
𝑄2003 𝑄2006 𝐼2006,2003 %
K
1.6 2 p 60
L
4 q 120 100
M 0.8 1.2 150 120
N r 1.6 80 80
Findp.q.r
𝐼2006,2003 K =
𝑄2006
𝑄2003
x 100 𝐼2006,2003 L=
𝑞
4
x 100 𝐼2006,2003 𝑁 =
1.6
𝑟
x 100
P=
2
1.6
x 100 120= 100q/4 80=
1.6
𝑟
x 100
=125 q=
120𝑥4
100
= 4.8 r=
1.6 𝑥 100
80
= 1.6
b) Composite Index2006 ,2003
=
(125x 60) + ( 120 x 100) + ( 150 x 120 ) + ( 80x 80)
360
=
43900
360
= 121.9
Correspondingcost2003
Cost 2006 = RM40
Composite index =121.9
2003 2006
P 40
100 121-9
P =
100x 40
121.9
= RM32.81
The cost makingcake increase 40%2006 to 2010 =
FindComposite Index2010,2003
Cost 2006 = RM40
2010 2006
140 100
P 40
Price 2010 =
40 x 140
100
= RM56
Composite Index=
𝑃𝑟𝑖𝑐𝑒2010
𝑃𝑟𝑖𝑐𝑒2006
=
𝑅𝑚56
𝑅𝑚32.81
= 170.7
3. Example 3
𝑄2005 𝑄 2008
P 4 3
Q 2.5 3.00
R y z
S 2.00 2.2
i) Composite Index 2008,2005 =125
125=
𝑄2008
𝑄2005
x 100
125=
𝑥
4
x 100
X =
125 𝑥 4
100
= RM5
b) 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 2008,2005 = 140
100
140
=
𝑦
𝑦+2
y= Rm5 if Price 2005 is2 timesPrice 2008
140 =
𝑧
5
x 100
z = RM7
Example 4
Price Index 2009,2007
A 130 1
B 140 3
C 115 2n
D 120 n
Price of A 2009 = RM2.60
Price of A 2007 = p ?
2009 2007
2.6 p
130 100
130p= 2.6 x 100
P=
2.6 x 100
130
= RM12.00
b) Composite Index 2009,2007 = 125
125=
130(1)+140(3)+115(2n)+120(n)
4+3𝑛
n= 2
c) Price cake 2007= ?
Correspondingprice 2009 RM46.00
Composite Index 2009,2007 = 125
2007 2009
P 46
4. 100 125
P(125)= 46 x 100
P= RM36.80
Price D increase 10% from2009 to 2010
FindComposite Index2010,2009
Price Index D= 110% x 120 = 132
NewComposite Index =130(1) + 140 (3) + 115( 4) + 132 (2)
1 + 3 + 4 + 2
= 127.4
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