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1. Increasing the original price of an item by 15 percent and then increasing the new price by another 15 percent is equivalent to increasing the original price by

  • A. 32.25%
  • B. 32.25%
  • C. 32.25%
  • D. 32.25%

Answer: Option A

Explanation:

Let the original price be P.

Now, the new price after increasing the original price by 15% = 1.15P

The final price after increasing the new price by another 15% = 1.15x1.15P = 1.3225P.

So, actual increament in the original price = {1.322P - P) / P} x 100 = 32.25%

[Shortcut: + 15 + 15 + (15x15)/100  = 32.25%]

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