Correct Option (2)
To determine the resultant increase, we can assume an initial price for the item. Let the initial price be Rs. 100.
- First, the price increased by 25%. The new price becomes: Rs. 100 + (25/100) * Rs. 100 = Rs. 100 + Rs. 25 = Rs. 125.
- Next, the price decreased by 20%. The price after this decrease is calculated on the current price of Rs. 125: Rs. 125 - (20/100) * Rs. 125 = Rs. 125 - Rs. 25 = Rs. 100.
- Finally, the price again increased by 10%. This increase is applied to the current price of Rs. 100: Rs. 100 + (10/100) * Rs. 100 = Rs. 100 + Rs. 10 = Rs. 110.
The final price is Rs. 110, and the initial price was Rs. 100. The net increase in price is Rs. 110 - Rs. 100 = Rs. 10.
The resultant percentage increase is (Net Increase / Initial Price) * 100 = (Rs. 10 / Rs. 100) * 100 = 10%.
Incorrect Options:
Options 1 (5%), 3 (12.5%), and 4 (15%) are incorrect. These values do not reflect the accurate cumulative effect of the sequential percentage changes. The correct calculation, considering each percentage change applied to the successively updated price, yields a 10% resultant increase.