Math Problem Statement

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?

Solution

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

Cost Price=Selling Price1+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.

Cost Price=9,5001+0.21=9,5001.21\text{Cost Price} = \frac{9,500}{1 + 0.21} = \frac{9,500}{1.21}

Now let's calculate:

Cost Price=9,5001.217,851.24\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.

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Markup calculation
Basic algebra

Formulas

Cost Price = Selling Price / (1 + Markup Percentage)

Theorems

-

Suitable Grade Level

Grades 9-10