If you aren't perfect at algebra you can simply pick values most of the time when there are variables in the answer choices - I picked x=5 and y = 200
5% of 200 = 10.
increasing 10 by 5% gives you 10.5
Then plug your original x and y into the answers:
A) - way too big
B) 1000 + 5/100 - nope
c) Too big (100,000 +5)/100
D - nope
E) 1000(105)/10000 - reduces to 105/10 - which is 10.5 - correct answer.
Becky
Master GMAT Instructor
The Princeton Review
Irvine, CA