Correct Answer - Option 2 : 5%
Formula used:
Area of rectangle = length × breadth
Calculation:
Let the length and breadth of a rectangle be l and b respectively
Initial area of rectangle = l × b
New length = l + 5% of l = 1.05 l
New area of rectangle = 1.05 l × b
Increase in area = (1.05 l × b) – (l × b) = 0.05 × l × b
Percentage increase = (0.05 × l × b)/(l × b) × 100 = 5%
∴ The area of rectangle will increase by 5%