Discussion

Explanation:

If A is increased by 20%, i.e. A1 = 1.2A

∴ A12 = (1.2A)² = 1.44A²

∴ A2 increases by 44%.

Alternately,

Percentage increase in A2 will be same as 2 successive percentage increases of 20% each,

i.e. 20 + 20 + (20 × 20)/100 = 40 + 4 = 44%.

Hence, option (b).

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