Que: A spice trader increased the selling price of a bag of spices by 40 percent and...........

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Que: A spice trader increased the selling price of a bag of spices by 40 percent and then again increased by 20 percent. Which of the following represents the final percent change in the selling price of the bag of spices?

(A) 28% less
(B) 40% more
(C) 60% less
(D) 60% more
(E) 68% more

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Solution: Let us apply the IVY approach to solve the question. As we are dealing with percentage, then let the original price of the bag of spices be $100.

Price after increment by 40%: (100 + 40)% of $100

=> (\(\frac{140}{100}\)) * $100 = $140

Price after second increment by 20%: (100 + 20)% of $140

=> (\(\frac{120}{100}\)) * $140 = $168

As the base price is $100, the final price would be 68% of the base price.

After - A ; Before - B

Since Percent change = \(\frac{A-B}{B}\cdot100\)(%) and $100 (Before) and $168 (After),

We get Percent change = \(\frac{168-100}{100}\cdot100\)(%) =\(\frac{68}{100}\cdot100\)(%) = 68%

Therefore, E is the correct answer.

Answer E