An item's price is increased by 25% and then by another 20%. What is the overall percentage increase?
Show answer & explanation
Correct answer: B
Explanation
Given:
First increase = 25%
Second increase = 20%
By the formula:
Total percentage change = a + b + (ab / 100)
= 25 + 20 + (25 × 20 / 100) = 50%