Question

Two successive price increases of $10\%$ and $20\%$ of an article are equivalent to a single price increase of.

• A. $28\%$
• B. $30\%$
• C. $32\%$
• D. $33\%$

Answer 1

The correct option is C $32\%$

Let original price of article $=Rs.100$

$10\%$ increase in price $\Rightarrow$ new price is $100+100\times \frac{10}{100}=Rs.110$

$20\%$ increase in new price $\Rightarrow$ final price is $110+110\times \frac{20}{100}=Rs.132$

Hence, net increase in price $=\frac{132-100}{100}\times 100=32\%$