He is doing it wrong.
If the start amount was 100$:
10% of 100\$ is 10\$, which after one raise gives you 110\$. 10% of this new amount is 11\$, which put on top gives 121\$.
What you get: $$100\$*1.1*1.1=100\$*1.21=121\$$$
What he should get:
$$x=\frac{\text{amount after}}{\text{amount before}}=\frac{121\$}{100\$}=1.21\,\,\,\,\,\text{ which is a raise of 21%}$$