Paasche Price Index Calculator

Financial Chemistry Engineering Health More >>

↳

Equity Banking Business Common Probability Distribution More >>

✖Price in Final Period refers to the value of an asset or investment at the end of a specified period.ⓘ Price in Final Period [Pi^F]			+10% -10%
✖Quantity in Final Period refers to the quantity of goods, services, or assets measured at the end of a specified period.ⓘ Quantity in Final Period [Qi^F]			+10% -10%
✖Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.ⓘ Price in Base Period [Pi^B]			+10% -10%

✖Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.ⓘ Paasche Price Index [PPI]

⎘ Copy

👎

Formula

✖

Paasche Price Index

Formula

PPI = (\frac{\sum (x, 1, 3, (Pi F \cdot Qi F))}{\sum (x, 1, 3, (Pi B \cdot Qi F))}) \cdot 100

Example

400 = (\frac{\sum (x, 1, 3, (40 \cdot 100))}{\sum (x, 1, 3, (10 \cdot 100))}) \cdot 100

Calculator

LaTeX

Reset

👍

Download Equity Formulas PDF PDF Image

Paasche Price Index Solution

STEP 0: Pre-Calculation Summary

Formula Used

Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100
PPI = ((sum(x,1,3,(Pi^F*Qi^F)))/(sum(x,1,3,(Pi^B*Qi^F))))*100
This formula uses 1 Functions, 4 Variables

Functions Used

sum - Summation or sigma (∑) notation is a method used to write out a long sum in a concise way., sum(i, from, to, expr)

Variables Used

Paasche Price Index - Paasche Price Index is used to measure the average change in the prices of a basket of goods and services between two periods.
Price in Final Period - Price in Final Period refers to the value of an asset or investment at the end of a specified period.
Quantity in Final Period - Quantity in Final Period refers to the quantity of goods, services, or assets measured at the end of a specified period.
Price in Base Period - Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.

STEP 1: Convert Input(s) to Base Unit

Price in Final Period: 40 --> No Conversion Required
Quantity in Final Period: 100 --> No Conversion Required
Price in Base Period: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PPI = ((sum(x,1,3,(Pi^F*Qi^F)))/(sum(x,1,3,(Pi^B*Qi^F))))*100 --> ((sum(x,1,3,(40*100)))/(sum(x,1,3,(10*100))))*100

Evaluating ... ...

PPI = 400

STEP 3: Convert Result to Output's Unit

400 --> No Conversion Required

FINAL ANSWER

400 <-- Paasche Price Index

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Equity » Paasche Price Index

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< Equity Calculators

Margin Call Price

Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))

Fisher Price Index

Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)

Marshall-Edgeworth Price Index

Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2

Maximum Leverage Ratio

Go Maximum Leverage Ratio = 1/Initial Margin Requirement

Paasche Price Index Formula

What is Paasche Price Index?

The Paasche Price Index is a measure used in economics to calculate the change in the overall price level of a variable basket of goods and services over time. Unlike the Laspeyres Price Index, which uses fixed quantities of goods and services, the Paasche index calculates the total cost of purchasing the current basket of goods at current prices relative to the total cost of purchasing the same basket at base period prices. This index reflects changes in both prices and quantities consumed, making it more flexible in capturing shifts in consumer behavior. The Paasche Price Index is valuable for analyzing changes in purchasing power and adjusting economic variables for inflation or deflationary effects.

How to Calculate Paasche Price Index?

Paasche Price Index calculator uses Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100 to calculate the Paasche Price Index, The Paasche Price Index formula is a measure used in economics to calculate the change in the overall price level of a variable basket of goods and services over time. Paasche Price Index is denoted by PPI symbol.

How to calculate Paasche Price Index using this online calculator? To use this online calculator for Paasche Price Index, enter Price in Final Period (Pi^F), Quantity in Final Period (Qi^F) & Price in Base Period (Pi^B) and hit the calculate button. Here is how the Paasche Price Index calculation can be explained with given input values -> 600 = ((sum(x,1,3,(40*100)))/(sum(x,1,3,(10*100))))*100.

FAQ

What is Paasche Price Index?

The Paasche Price Index formula is a measure used in economics to calculate the change in the overall price level of a variable basket of goods and services over time and is represented as PPI = ((sum(x,1,3,(Pi^F*Qi^F)))/(sum(x,1,3,(Pi^B*Qi^F))))*100 or Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100. Price in Final Period refers to the value of an asset or investment at the end of a specified period, Quantity in Final Period refers to the quantity of goods, services, or assets measured at the end of a specified period & Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.

How to calculate Paasche Price Index?

The Paasche Price Index formula is a measure used in economics to calculate the change in the overall price level of a variable basket of goods and services over time is calculated using Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100. To calculate Paasche Price Index, you need Price in Final Period (Pi^F), Quantity in Final Period (Qi^F) & Price in Base Period (Pi^B). With our tool, you need to enter the respective value for Price in Final Period, Quantity in Final Period & Price in Base Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search