Increasing the original price of a certain item by 25 percent and then increasing the new price by 25 percent is equivalent to increasing the original price by what percent?	Choose the correct choice:
A) 31.25	B) 37.5	C) 50.0	D) 52.5	E) 56.25

Rationale: "soln : - x * 1.25 * 1.25 = 1.5625 x so there is a net increase of 56.25 % . answer e ."
Answer: E