What is the single equivalent price increase for two successive price increases of 12% and 18% on an article?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 32.16%.
Net Increase (%) = a + b + (a × b) / 100
Where:
a = 12
b = 18
Net Increase = 12 + 18 + (12 × 18) / 100 = 30 + (216 / 100) = 30 + 2.16 = 32.16%