A price is increased by 10% and the new price is then increased by another 10%. What is the total percentage increase?

Answer and explanation

Correct answer: A. 21%

  1. Step 1: The price is multiplied by . Step 2. That is a total increase of 21%. Answer: 21%. Why not the others: 20% adds the two rates, although the second increase acts on a larger price, 1% multiplies the two rates, and 121% is the final price as a percentage of the original.

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