Increasing the original price of an article by 15 percent : GMAT Problem Solving (PS)
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# Increasing the original price of an article by 15 percent

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Increasing the original price of an article by 15 percent [#permalink]

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05 Feb 2012, 15:25
00:00

Difficulty:

5% (low)

Question Stats:

79% (01:00) correct 21% (00:43) wrong based on 199 sessions

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Increasing the original price of an article by 15 percent and then increasing the new price by 15 percent is equivalent to increasing the original price by

A) 32.25%
B) 31.00%
C) 30.25%
D) 30.00%
E) 22.50%
[Reveal] Spoiler: OA

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Re: Increasing the original price of an article by 15 percent [#permalink]

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05 Feb 2012, 15:41
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Expert's post
fiendex wrote:
Increasing the original price of an article by 15 percent and then increasing the new price by 15 percent is equivalent to increasing the original price by

A) 32.25%
B) 31.00%
C) 30.25%
D) 30.00%
E) 22.50%

You can do this by approximation, or with straight math by calculating 100*1.15^2.

Or step by step: if you increase 100 by 15% you'll get 115, then if you increase 115=100+15 by 15% again, 100 will gain 15 again and 15 will gain its 15% which is 2.25, so total gain is 15+2.25=17.25 --> 115+17.25=132.25.

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Re: Increasing the original price of an article by 15 percent [#permalink]

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11 Jul 2014, 00:10
Initial Price = 100

15% increase = 115

Again 15% increase on new price $$= 115 + 115 * \frac{15}{100}$$

= 115 + 117.25

= 132.25

Percentage Increase = 132.25 - 100 = 32.25%
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Re: Increasing the original price of an article by 15 percent [#permalink]

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11 Jul 2014, 04:50
Original Price be P

Increasing by 15% => New price = 1.15 P
Again Increasing it by 15 % => Final Price = 1.15*1.15 P = 1.3225 { 115^2 = 11*12 25 = 13225}

Hence increase is (1.3225 - 1)*100% = 32.25%
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Re: Increasing the original price of an article by 15 percent [#permalink]

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30 Mar 2016, 13:32
consider base price as \$100
15% increase = 1.15*100 = 115
Another 15% increase on new price = 1.15 * 115 = 132.25
therefore a 32.25% increase

Correct ans - A
Re: Increasing the original price of an article by 15 percent   [#permalink] 30 Mar 2016, 13:32
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