Question

A market buys mixed nuts at $15 per pound. They want to make a 20% profit. What would you pay for 1 pound of nuts?

Answer 1

$15(100% + 20%) = 15 * 120% = 15 * 1.2 = $18

Answer 2

The answer is $18 per pound of nuts.

Explanation:

Given that the market wants to make a 20% profit, we can write this mathematically :

Sale price - Purchase price = 20%

We know that the Purchase price is 100% ⇒

Sale price - 100% = 20%

Sale price = 20% + 100%

Sale price = 120%

Therefore, the Sale price will be 120% respect the Purchase price.

Because exist a linear relationship between the price and the percentage, and this relationship is direct, we can write :

The purchase price is 15$ = 100% ⇒

`(15)/(100)=(x)/(120)`

`x=((15).(120))/((100))=18`

We conclude that If 15$ = 100% therefore 18$ = 120%

And $18 per pound of nuts is the sale price If the market wants a 20% profit.