Question

Two statements are given, evaluate both the statements and choose the appropriate the option.

Statement I - Two Successive increase of 12.5% each of 640.

Statement II - Successive increase of 20% and 5% of 640.
1. Statement I ≥ Statement II
2. Statement II ≥ Statement I
3. Statement I > Statement II
4. Statement II > Statement I

Answer 1

Correct Answer - Option 3 : Statement I > Statement II

Given:

Statement I:

Successive increase % = 12.5%

Statement II:

Successive increase % = 20% and 5%

Formula used:

Effective % = ± x ± y ± (xy) / 100

Calculation:

Statement I:

Effective % = 12.5% + 12.5% + (12.5 × 12.5) / 100

= 25 + 1.5625 = 26.5625%

∴ Increase in value = 640 + 26.5625% of 640

= 640 + 170 = 810

Alternate method:

Convert % into fraction and proceed.

∵ % increase = 100 + 12.5 = 112.5%

112.5% = 9 / 8

∴ Increase in value = 640 × 9 / 8 × 9 / 8

= 810

Statement II:

Effective % = 20 + 5 + (20 × 5) / 100 = 21%

∴ Increase in value = 640 + 21% 0f 640

= 806.4