Question

Kurt bought a recliner with a sticker price of $900. If he paid $15 a week for 2 years, what was the approximate markup rate on the recliner?

A.57.7%
B.73.3%
C.15.4%
D.86.6%

Answer 1

B. 73.3%

Explanation:

Given,

The sticker price of the recliner = $ 900,

Since, the weekly installment = $ 15,

Also, the number of weeks in a year = 52

So, the total money paid in 2 years = 2 × 52 × 15 = $ 1560.

⇒ He paid $ 1560 for the recliner,

Thus, the total markup in recliner = Paid amount - Sticker price

= 1560 - 900= $ 660

Hence,

`\text{The markup rate of the recliner}=\frac{\text{Total markup}}{\text{ Sticker price}}`

`=(660)/(900)* 100`

`=(66000)/(900)`

`=73.333\%\approx 73.3\%`

Option B is correct.