https://file.aiquickdraw.com/mathbot/file/1726082364443kavr7ais.jpg

To solve this problem, we need to calculate the markup amount when the cost of the car is increased by 5%.

Given:
- Original cost = $10,000
- Percentage markup = 5%

The formula for calculating the markup amount is:
\[
\text{Markup} = \text{Original Cost} \times \left( \frac{\text{Percentage Markup}}{100} \right)
\]

Substitute the values into the formula:
\[
\text{Markup} = 10,000 \times \left( \frac{5}{100} \right) = 10,000 \times 0.05 = 500
\]

So, the correct answer is:
**A. $500**

Would you like to know more details or have any questions about this calculation?

Here are some related questions to expand your understanding:
1. How do you calculate the selling price after applying a markup?
2. What would be the selling price if the markup were 10% instead of 5%?
3. How is a markup different from a profit margin?
4. How would you calculate the final cost after applying a discount to the marked-up price?
5. What is the impact of a markup on the overall profit for a seller?

**Tip:** Understanding how to calculate markups helps in evaluating pricing strategies in business scenarios!

A car seller buys a car from a manufacturer for $10,000. He increases the cost by 5 percent. What is the markup amount?

Learn how to calculate the markup amount when the original cost of a car is $10,000 and it is increased by 5%. This problem uses basic arithmetic and percentage calculations and is suitable for students in Grades 6-8.

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