Multiple choice

Harsh's salary is firstly increased by 15 percent and then again increased by 20 percent. What is the overall percentage increase in A’s salary?

  1. 32%

  2. 38%

  3. 45%

  4. 42%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For successive percentage changes, use the multiplier method. First increase of 15%: multiplier = 1.15. Second increase of 20%: multiplier = 1.20. Combined effect = 1.15 × 1.20 = 1.38, which represents a 38% overall increase. The key insight is that successive percentage changes compound, not add simply.

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