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# Increasing the original price of an article by 15% and then

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Manager
Joined: 04 Jan 2013
Posts: 79

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Increasing the original price of an article by 15% and then [#permalink]

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09 Mar 2013, 21:48
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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

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help
[Reveal] Spoiler: OA

Kudos [?]: 18 [0], given: 1

VP
Joined: 02 Jul 2012
Posts: 1216

Kudos [?]: 1696 [0], given: 116

Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Re: Increasing the original price of an article by 15% and then [#permalink]

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09 Mar 2013, 22:24
chiccufrazer1 wrote:
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

Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

To INCREASE a certain number by 15%, you will have to multiply by 1.15
To DECREASE a certain number by 15%, you will have to multiply by 0.85.
To find what 15% of a certain number is, you will have to multiply by 0.15

Lets say the original price of the article is 10$Multiplying 10 by 1.15 we get 11.5$
Now multiplying 11.5 by 1.15 again we get 13.225 which is the same as increasing 10 by 32%.
So the answer you got is correct.

If the answer choices aren't incorrect, you would be best served to choose the closest possible answer choice i.e. A and move on.
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Kudos [?]: 1696 [0], given: 116

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Re: Increasing the original price of an article by 15% and then [#permalink]

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10 Mar 2013, 05:49
chiccufrazer1 wrote:
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

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

The actual increase would be a little more that 15 + 15 = 30%, only A fits.

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Hope it helps.
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Kudos [?]: 133163 [0], given: 12416

Intern
Joined: 14 Jan 2011
Posts: 3

Kudos [?]: 1 [0], given: 5

Re: Increasing the original price of an article by 15% and then [#permalink]

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10 Mar 2013, 08:52
chiccufrazer1 wrote:
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

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

During successive increment or decrements we can apply below mentioned logic. Helps to calculate faster

Let the price of a commodity is increased by a% and then b% then the final increment will be

1 + a/100 + b/100 + ab/10000

Now the same logic can be applied with decrements also with just changing the signs.
Let for example price of commodity is increased by a% and then decreased by b% then the resulting increase/decrease will be

1 + a/100 - b/100 -ab/10000

For the above question the approach will be

1 + 0.15 + 0.15 + 0.0225 = 1.3225 ==> 32.25%

Kudos [?]: 1 [0], given: 5

Manager
Joined: 02 Aug 2013
Posts: 64

Kudos [?]: 10 [0], given: 80

Location: India
WE: Programming (Consulting)
Re: Increasing the original price of an article by 15% and then [#permalink]

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20 May 2017, 05:29
Since the nearest ans to 32 % is option A. I chose option A.

Let 100 be original price.
15 % increase = 115
15% increase = little more then 15 = 132

Hence 32 % increase.

Alternatively Solution:

15 + 15 + $$\frac{(15)(15)}{100}$$

30 +$$\frac{225}{100}$$

30 + 2.25

32.25

Kudos [?]: 10 [0], given: 80

Re: Increasing the original price of an article by 15% and then   [#permalink] 20 May 2017, 05:29
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