Increasing the original price of a certain item by 15 percent and then increasing the new price by 15 percent is equivalent to increasing the original price by what percent?  Pick:
A) 31.25  B) 37.5  C) 30.0  D) 32.75  E) 32.25
We're told that the original price of an item is increased by 15% and then THAT price is increased by 15%....   IF....   Starting value = $100   + 15% = 100 + .15(100) = 115   + 15% = 115 + .15(115) = 115 + 17.25= 
<gadget id="calculator">115 + 17.25</gadget>
<output>132.25</output>
132.25   The question asks how the final price relates to the original price. This is essentially about Percentage Change, which means we should use the Percentage Change Formula:   Percentage Change= (New - Old)/Old = Difference/Original   Doing either calculation will yield the same result:   32.25/100 = 32.25%   Final Answer:   32.25
<result>E</result>
Increasing the original price of a certain item by 15 percent and then increasing the new price by 15 percent is equivalent to increasing the original price by what percent?