An inflationary increase of 20 percent on an order of raw materials fo

Question

An inflationary increase of 20 percent on an order of raw materials followed by an inflationary increase of 10 percent amounts to

A) the same as one 22 percent inflationary increase

B) the same as one 30 percent inflationary increase

C) the same as an inflationary increase of 10 percent followed by an inflationary increase of 20 percent

D) less than an inflationary increase of 10 percent followed by an inflationary increase of 20 percent

E) more than an inflationary increase of 10 percent followed by an inflationary increase of 20 percent

Kinshook · Answer

Since 1.1 * 1.2 = 1.2 * 1.1

IMO C

ashudhall · Answer

Suppose the amount be 100
After 20% increase = 120
After 10% increase = 132
Hence 32% increase

Considering the options a, b are out

10% increase on 100 = 110
20% increase on 110 = 132
Hence c is the answer

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RajatVerma1392 · Answer

This is percent increase problem.
Let the quantity is 100, then:
20% increase => 120
10 % increase on 120 = > 120 + 12 = 132.
or 100 * 1.2 * 1.1 = 132

So, as per answer choices:
only C is valid.
As, 10% increase and then 20% increase = 100 * 1.1 * 1.2 =132

IMO, the answer is C.

Please hit kudos if you like the solution.

Palladin · Answer

Let  x  be the cost of raw materials.

Cost of raw materials after a  20\%  inflationary increase =  1.2 * x 
Cost of raw materials after a  10\%  increase on a  20\%  inflationary increase =  1.1 * 1.2 * x  =  1.32 * x

So, the resultant cost of raw materials is the same as a  32\%  increase.
Or, since multiplication is commutative, it is the same as a  20\%  increase on a  10\%  inflationary increase.

Hence, the answer is   C  .

Archit3110 · Answer

let 100 be base ; so 100*1.22*1.1 = 134.2 is same as the same as an inflationary increase of 10 percent followed by an inflationary increase of 20 percent

IMO C

Kinshook · Answer

100*1.2*1.1=132=100*1.1*1.2
Should be corrected

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ScottTargetTestPrep · Answer

The increase is 1.2 x 1.1 = 1.32 or a 32 percent increase. Thus, it’s the same as 1.1 x 1.2 = 1.32, which is also a 32 percent increase.

Answer: C

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