AHSME 1993 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: $\text{(A) } 6\% \text{(B) } 7\% \text{(C) } 7.5\% \text{(D) } 8\% \text{(E) } 15\%$