Increasing the original price of a certain item by 20 percent and then increasing the new price by 20 percent is equivalent to increasing the original price by what percent?  Choose the correct option:  A) 31.25  B) 37.5  C) 50.0  D) 52.5  E) 44.0
We're told that the original price of an item is increased by 20% and then THAT price is increased by 20%....   IF....   Starting value = $100   + 20% = 100 + .20(100) = 120   + 20% = 120 + .20(120) = 120 + 24= 
<gadget id="calculator">120 + 24</gadget>
<output>144</output>
144   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:   44/100 = 44%   Final Answer:   44.0
<result>E</result>
Increasing the original price of a certain item by 20 percent and then increasing the new price by 20 percent is equivalent to increasing the original price by what percent?