A brand's watch price is first marked 15% above its original price and then increased by an additional 10% due to higher demand. What is the overall percentage increase relative to the original price?

Introduction / Context:
Successive percentage increases multiply, not add. We must compound the 15% and 10% increases to find the net change over the original price.

Given Data / Assumptions:

• Initial price = P.
• After first increase: 1.15P.
• After second increase: 10% more on the new price ⇒ 1.10 * 1.15P.

Concept / Approach:
Net multiplier = 1.15 * 1.10 = 1.265. The overall increase is 1.265 − 1 = 0.265 = 26.5%.

Step-by-Step Solution:

Verification / Alternative check:
If P = ₹100, new price after steps = ₹126.50, yielding exactly 26.5% rise.

Why Other Options Are Wrong:
25% and 27% are rounding guesses; 35% incorrectly adds 15% and 20% (or misreads the steps).

Common Pitfalls:
Adding 15% and 10% (which would give 25%) instead of compounding.

Final Answer:
26.5%