Walter is a used car dealer. He has the chance to buy a used car that he thinks

he can resell for $6,400. If Walter needs a 30% markup on selling price, what

price can he pay for the car?

Cost = __________

To find the price Walter can pay for the car, we need to understand how markup works. A 30% markup on the selling price means Walter's cost should be 70% of the selling price because:

\[
\text{Cost} + 30\% \times \text{Cost} = \text{Selling Price}
\]

In this case, the selling price is $6,400. Therefore, the cost is 70% of $6,400. To find the cost, we calculate:

\[
\text{Cost} = 0.70 \times 6400
\]

\[
\text{Cost} = 4480
\]

So, Walter can pay **$4,480** for the car.

Would you like a breakdown or explanation of the process? Here are some related questions to consider:

1. How does markup differ from profit margin?
2. What if Walter wanted a 40% markup instead of 30%?
3. How does a dealer decide on an appropriate markup percentage?
4. What would the selling price need to be for a 20% markup if he paid $4,000 for the car?
5. How does inflation affect the resale value of used cars?

**Tip:** Markup is based on cost or selling price, while profit margin is always based on selling price.

Walter is a used car dealer. He has the chance to buy a used car that he thinks he can resell for $6,400. If Walter needs a 30% markup on selling price, what price can he pay for the car? Cost = __________

Learn how to calculate the price Walter, a used car dealer, can pay for a car given a 30% markup on a selling price of $6,400. This problem demonstrates the concept of percentages and markup, making it ideal for students in Grades 6-8.

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