Correct Answer:
B. 2.01
Explanation:
The correct answer is 2.01% because the area of a square depends on the square of its side length.
- Step 1: Original side length is x
- Step 2: New side length becomes 1.01 times x
- Step 3: New area becomes 1.01 times 1.01 times x squared = 1.0201 x squared
- Step 4: Increase in area = 0.0201 which equals 2.01 percent