Multiple choice

A shopkeeper increased the price of an article first by 25% and then by 20%. What is the total per cent increase?

  1. 45%

  2. 40%

  3. 50%

  4. 55%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When applying successive percentage increases, multiply the factors: 1.25 × 1.20 = 1.50, which represents a 50% total increase. The common mistake is adding percentages directly (25% + 20% = 45%), but percentages compound on the increased base amount after the first increase.

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