The price of a product increases by 10% in the first year and 20% in the second year. What is the overall percentage increase in the price of the product over the two years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 32%.
Successive percentage = a +b + ab/100
Overall percentage increase = 10 +20 + 10×20/100
⇒30 + 2 = 32%
Hence, the overall percentage increase is 32%.