8

Set 1: Percentages (Intermediate)

Explanation

Answer: B

PROBLEM

A price of $90 increases by 25%. What is the new price?

A price of $90 increases by 25%. What is the new price?

A.

122.5

B.

112.5

✓ Correct
C.

225

D.

107.5

Detailed Explanation

Choice B is the best answer. Increase = 25% of 90 = 22.5. New price = 90 + 22.5 = $112.5

Why others are wrong:
A: 122.5 is incorrect because it does not satisfy the equation.
C: 225 is incorrect because it does not satisfy the equation.
D: 107.5 is incorrect because it does not satisfy the equation.