1993 AHSME Problem 5

Last year a bicycle cost 160 and a cycling helmet 40. This year the cost of the bicycle increased by 5\%, and the cost of the helmet increased by 10\%. The percent increase in the combined cost of the bicycle and the helmet is:

\text{(A) } 6\%\quad \text{(B) } 7\%\quad \text{(C) } 7.5\%\quad \text{(D) } 8\%\quad \text{(E) } 15\%

Full credit goes to MAA for authoring these problems. These problems were taken on the AOPS website.