Question

A used car dealer has a has a vehicle on the lot with a sticker price of $5,999. If the dealers markup is 20%, how much did the dealer pay for the car?

A.$4999.17
B$4925.75
C.$4000.00
D.$4499.15

As you can see by attachment I've typed all the possible answers correctly. My math isn't coming out to any of these answers. I took $5999. - 0.2= $1199.80
$5999. - $1199.80 = $4799.20

Either I'm doing it totally wrong or the 4 choices are wrong. Which would be best choice if the 4 choices are wrong?

Answer 1

Option A.$4999.17 is the right answer.

Explanation:

Given : Selling price of the car in a vehicle lot = $5999

Markup is given as 20%.

To find: Dealer's cost price for the car.

Solution: Let the cost price of a car to the dealer is = $x

Then Selling price of the car = x + markup.

= x + 0.20x

5999 = 1.20x

x = 5999÷1.2 = $4991.67

So the nearest value given in the options is $4999.17 is the right answer.