If price of an article increases successively by 15% and 10%, respectively, then what is the percentage equivalent to a single price increase of that article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 26.5%.
a = 15% (first increase)
b = 10% (second increase)
Equivalent percentage increase = a + b + (a × b)/100
⇒ 15 + 10 + (15 × 10)/100
⇒ 25 + 150/100
⇒ 25 + 1.5 = 26.5%