Hi All,

The math behind this prompt can be done in a number of different ways (using fractions, decimals or ratios). The prompt is perfect for TESTing VALUES.

We're told that the original price of an item is increased by 25% and then THAT price is increased by 25%....

IF....

Starting value = $100

+ 25% = 100 + .25(100) = 125

+ 25% = 125 + .25(125) = 125 + 31.25 = 156.25

The question asks how the final price relates to the original price. This is essentially about Percentage Change, which means we should use the Percentage Change Formula:

Percentage Change = (New - Old)/Old = Difference/Original

Doing either calculation will yield the same result:

56.25/100 = 56.25%

Final Answer:

GMAT assassins aren't born, they're made,

Rich

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