SPM Form 4 Add Maths_Chapter 11 Index Number

There are two formulas in this chapter where students will be able to find the quantity or price at a specific time if an Index Number is given.

Formulas:
Index Number, I = Q₁/ Q₀ x 100

Q₀ = Quantity at the base time

Q₁ = Quantity at specific time

Price Index, I = P₁/ P₀ x 100

P₀ = Price of item at the base time

P₁ = Price of item at specific time

As time goes, price or value of an item might fluctuates thus Index Number is important in calculating the value of an item in a specific year, i.e future year or past year. 

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