A shopkeeper first increased the price of an article by 25\% and then by 20\%. What is the total percent increase? (P.C.S., 2008)
(a)40\%
(b)45\%
(c)50\%
(d)55\%
Answer
Answer (as printed): C
Explanation
Let the original price be ₹ 100. New final price = 120\% of (125\% of ₹ 100) $$=₹\left(\frac{120}{100} \times \frac{125}{100} \times 100\right)=₹ 150 . \therefore \text { Increase }=(150-100) \%=50 \% .$$
Explanation as extracted from the printed page; notation may be imperfect.