A wage rises by 10 percent and then by a further 20 percent of the new wage. What is the total rise?
Answer and explanation
Correct answer: D. 32 percent
- Step 1: Start at 100: after 10 percent the wage is 110. Step 2. 110 x 1.2 = 132, so the total rise is 32 percent. Answer: 32 percent. Why not the others: 30 percent adds the two percentages without compounding.
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