ANSWERS: 2
  • If you increase something by 25%, it is the same as multiplying it by 1.25 and you have specified that this must be done 3 times. The arithmatic that describes this is: 25 x 1.25 x 1.25 x 1.25 = 48.828125
  • There are four different answers to this question: A: If something is increased by 25% it doesn't matter how long it takes, an increase of a quarter is an increase of 6.25 which takes it to 31.25 B: But perhaps the question means, if it increases by 25% over 3 years, how much does it increse in one year. 25% of 25 is 25/100 of 25 = 625/100 = 6.25 If that's three years worth, then one years worth is 6.25/3 = 2 and a twelfth. C: But perhaps the question meant, the 25 is increased three times by 25% of 25. This is like 'simple interest' Then it is increased by 75% of 25 or multiplied by 1.75 which leads to 43.75 D: Or, it could mean the 25 is increased each year by 25% of whatever it happens to be at the time. This is 'compound interest'. The 25 becomes 1.25*25, then 1.25*1.25*25 then 1.25*1.25*1.25*25 = 48.828125 The wording of the question suggests to me that (A) is what is wanted.

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