Question

You see a used car you wish to buy. The dealer quotes you a price of $8,595. You have a blue book quotation of $7,400 for the same model and year. How much markup on cost is the dealer using?

(Please write out the equation you used so I can learn from it, not just an answer)

Answer 1

((8,595−7,400)÷7,400)×100
=16.15%

Answer 2

16.15 % ( approx )

Explanation:

Since, the marked price of the car told by dealer, M.P.= $ 8595,

While, the actual price of the car, C.P. = $ 7400,

Thus,

`\text{The markup percentage}=(M.P. - C.P.)/(C.P.)* 100`

`=(8595-7400)/(7400)* 100`

`=(1195)/(7400)* 100`

`=(119500)/(7400)`

`=16.1486486486\approx 16.15\%`

Hence, the cost of car is marked up 16.15 % more than the actual price of the car.