If an item costing $50 has a 20% increase, what is the new price?

To determine the new price of an item after a 20% increase, first, you need to calculate 20% of the original price, which is $50 in this case.

Calculating 20% of $50 involves multiplying 50 by 0.20 (the decimal equivalent of 20%). This calculation is:

[ 50 \times 0.20 = 10 ]

This means that the increase in price is $10. Next, to find the new price, you add this increase to the original price:

[ 50 + 10 = 60 ]

Therefore, the new price of the item after a 20% increase is $60. This clearly identifies the correct answer as the new price, which is accurately represented by the choice labeled B.