Problem Solving

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.