Due to an error, a shopkeeper increases the selling price of a Rs 500 item by 10% instead of decreasing it by 10%. What is the percentage increase in the price due to this error?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 22.22%.
Correct price after 10% decrease = 500 × 0.90 = 450
Wrong price after 10% increase = 500 × 1.10 = 550
Difference = 550 - 450 = 100
Percentage increase over correct price = (100/450) × 100 ≈ 22.22%