The price of a tool increased from ₹400 to ₹500. Calculate the percentage increase based on the original price.
25%
To calculate the percentage increase in the price of a tool from ₹400 to ₹500, we use the formula for percentage increase:
\(\text{Percentage Increase} = \left(\frac{\text{New Price} - \text{Original Price}}{\text{Original Price}}\right) \times 100\%\)
- Identify the original and new prices. The original price is ₹400, and the new price is ₹500.
- Find the difference between the new price and the original price: \(\text{Difference} = 500 - 400 = 100\).
- Substitute the values into the percentage increase formula:
\(\text{Percentage Increase} = \left(\frac{100}{400}\right) \times 100\%\)
- Simplify the fraction: \(\frac{100}{400} = 0.25\).
- Multiply by 100 to convert to percentage: \(0.25 \times 100\% = 25\%\).
Therefore, the percentage increase in the price is 25%.
Correct Answer: 25%
Each option is evaluated accordingly, and 25% matches our calculated result, making it the correct choice.
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