Explanation : Area of the square = 5 x 5 = 25 cm2
When length is increases by 1 %.
Then, length of the square = 5 + (5x1)/100 = 5.05cm
Area of new square = (5.05) x (5.05) = 25.5025 cm2
Increase in area = 25.5025 - 25 = 0.5025
Percentage increase in area = (0.5025/25) x 100 = 2%