Answer:
The correct option is B. 75%
Explanation:
Suppose x be the original price of the radio,
After increasing the price by 25%,
New price = x + 25% of x
[tex]=x + \frac{25x}{100}[/tex]
[tex]=x +\frac{x}{4}[/tex]
[tex]=\frac{4x+x}{4}[/tex]
[tex]=\frac{5x}{4}[/tex]
Again after increasing by 40%,
Final price = [tex]\frac{5x}{4}+40\%\text{ of }\frac{5x}{4}[/tex]
[tex]=\frac{5x}{4}+\frac{5x\times 40}{400}[/tex]
[tex]=\frac{5x}{4}+\frac{x}{2}[/tex]
[tex]=\frac{5x + 2x}{4}[/tex]
[tex]=\frac{7x}{4}[/tex]
Hence, the total increment percentage in price
[tex]=\frac{\text{Final price-Original price}}{\text{Original price}}\times 100[/tex]
[tex]=\frac{\frac{7x}{4}-x}{x}\times 100[/tex]
[tex]=\frac{7x-4x}{4x}\times 100[/tex]
[tex]=\frac{3}{4}\times 100[/tex]
[tex]=3\times 25[/tex]
= 75%
i.e. OPTION B is correct.