Increasing the original price of a certain item by 20 percent and then increasing the new price by 20 percent is equivalent to increasing the original price by what percent? Choose the correct choice from the following choices
A) 31.25	B) 37.5	C) 50.0	D) 52.5	E) 44.0

Rationale: "we ' re told that the original price of an item is increased by 20 % and then that price is increased by 20 % . . . . if . . . . starting value = $ 100 + 20 % = 100 + . 20 ( 100 ) = 120 + 20 % = 120 + . 20 ( 120 ) = 120 + 24 = 144 the question asks how the final price relates to the original price . this is essentially about percentage change , which means we should use the percentage change formula : percentage change = ( new - old ) / old = difference / original doing either calculation will yield the same result : 44 / 100 = 44 % final answer : e"
Answer: E