You, as a used car dealer, have the opportunity to buy a 3-year-old car. You think you can sell the car for $9,500.  If you want to maintain a 21% markup on selling price, what price should you pay for the car?

To determine the price you should pay for the car, we need to use the following formula based on markup percentage:

\[
\text{Cost Price} = \frac{\text{Selling Price}}{1 + \text{Markup Percentage}}
\]

Here, the selling price is $9,500, and the markup percentage is 21%, which we express as a decimal: 0.21.

\[
\text{Cost Price} = \frac{9,500}{1 + 0.21} = \frac{9,500}{1.21}
\]

Now let's calculate:

\[
\text{Cost Price} = \frac{9,500}{1.21} \approx 7,851.24
\]

So, you should pay approximately **$7,851.24** for the car.

Would you like any further clarification or details on this calculation?

Here are 5 related questions:
1. What would the markup percentage be if you paid $8,000 for the car and sold it for $9,500?
2. How does changing the markup percentage affect your buying price?
3. If you sold the car for $10,000 with the same markup, what would your buying price be?
4. How can you calculate the profit from the markup percentage and selling price?
5. What is the difference between markup on cost and markup on selling price?

**Tip:** Markup based on selling price is different from markup based on cost. Be clear on which one you're calculating to avoid errors.

You, as a used car dealer, have the opportunity to buy a 3-year-old car. You think you can sell the car for $9,500. If you want to maintain a 21% markup on selling price, what price should you pay for the car?

Learn how to calculate the cost price of a car with a selling price of $9,500 and a 21% markup. This problem involves basic algebra and markup calculations, making it ideal for students in Grades 9-10. Follow a step-by-step solution to find that the cost price is approximately $7,851.24.

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