Two successive price increases of 5% and 5% of an article are equivalent to a single price increase of:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 10.25%.
The successive increment = x + y + xy/100
⇒ 5 + 5 + 25/100
⇒ 10 + 0.25 = 10.25%