BUSINESS, FUR1 2002 VCAA 9 MC

Roland wants to increase the price of his products by `text(5%)`. By mistake, he increases the price by `text(8%)`. Realising the mistake, he tries to correct his mistake by discounting the new prices by `text(3%)`.
As a result, the products have had a price increase (from the original price) of

A. 2.60%

B. 3.00%

C. 4.76%

D. 5.00%

E. 5.24%

Show Answers Only

`C`

Show Worked Solution

`text(Let original price be)\ x.`

`text(Price after 8% increase)`	`= 1.08 xx x`
	`= 1.08x`
`text(Price after 3% decrease)`	`= 1.08x xx (1 − 0.03)`
	`= 1.08x xx 0.97`
	`= 1.0476x`

`:.\ text(% increase from original price)\ x\ text(is 4.76%).`

`=> C`