Multiple choice

The production of company A increased by 25% from 1994 to 1995, and its further increased by 60% from 1995 to 1996. What is the total percent increase in production from 1994 to 1996?

  1. 65%

  2. 75%

  3. 85%

  4. 100%

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When production increases by 25% and then by 60%, the total increase is calculated multiplicatively: if 1994=100, then 1995=125 (100+25%), and 1996=200 (125+60% of 125). Total increase from 1994 to 1996 is 100%, not 85% (which would be 25+60).