A salary increases by $10\%$ in year 1 and by $20\%$ in year 2. The total percentage increase over the two…

A salary increases by $10\%$ in year 1 and by $20\%$ in year 2. The total percentage increase over the two years is
  1. $30\%$
  2. $32\%$
  3. $33\%$
  4. $200\%$

Solution

Net factor $= 1.10 \times 1.20 = 1.32$, i.e., a $32\%$ increase. Equivalent shortcut: $10 + 20 + \dfrac{10 \cdot 20}{100} = 32$.

Asked in: IMO

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