This option is correct because the percentage increase is calculated as (increase ÷ original value) × 100. The increase is 120 − 100 = 20. So, (20 ÷ 100) × 100 = 20%. Therefore, the price has increased by 20%.
Option A:
The increase of ₹20 over an original price of ₹100 represents 20% of the original. This is obtained directly from the formula and matches intuitive understanding. Hence, 20% is the correct percentage increase.
Option B:
A 10% increase on ₹100 would be ₹10, giving a final price of ₹110. The actual new price is ₹120, so 10% underestimates the change. Therefore, this option is wrong.
Option C:
A 15% increase would add ₹15, resulting in a price of ₹115. This still does not reach the actual new price of ₹120. Thus, 15% is not the correct percentage increase.
Option D:
A 25% increase on ₹100 would be ₹25, leading to a price of ₹125. This overshoots the given new price, so 25% is too high. Hence, this option is incorrect.
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