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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## Increasing the original price ##### This topic has 1 expert reply and 0 member replies ### Top Member ## Increasing the original price Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %? A. 34 B. 40 C. 68 D. 88 E. 102 Can some experts help me find the best solution in this problem? OA A ### GMAT/MBA Expert GMAT Instructor Joined 04 Oct 2017 Posted: 551 messages Followed by: 11 members Upvotes: 180 Top Reply Quote: Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %? A. 34 B. 40 C. 68 D. 88 E. 102 Can some experts help me find the best solution in this problem? OA A Hi lheiannie07, Let's take a look at your question. If the original price of the item is '100'. 15% increase means: $$=\left(15\%\right)100$$ $$=\left(\frac{15}{100}\right)100=15$$ Total price of the item after 15% increase is: $$=100+15=115$$ 15% increase in the new price: $$=\left(15\%\right)\left(115\right)$$ $$=\left(0.15\right)\left(115\right)=17.25$$ Total price of the item after 15% increase again: $$=115+17.25$$ $$=132.25$$ $$=100+32.25$$ So the increase in the original price if 32.25%. Which is approximately equal to Option A. Hence Option A is correct. Hope it helps. I am available if you'd like any follow up. _________________ GMAT Prep From The Economist We offer 70+ point score improvement money back guarantee. Our average student improves 98 points. Free 7-Day Test Prep with Economist GMAT Tutor - Receive free access to the top-rated GMAT prep course including a 1-on-1 strategy session, 2 full-length tests, and 5 ask-a-tutor messages. Get started now. • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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