Question

By selling a bicycle at $1334, a shopkeeper would suffer a loss of 8%. At how much amount should he sell it to make a profit of 2.5?

Answer 1

The shopkeeper should sell the bicycle for $1486.25 to achieve a 2.5% profit. Calculating the cost price at an 8% loss, then determining the selling price for a 2.5% profit achieves this figure.

Step-by-step explanation:

To determine at what amount the shopkeeper should sell the bicycle to make a 2.5% profit instead of an 8% loss, we first need to calculate the cost price of the bicycle. If selling at $1334 results in an 8% loss, we can represent the situation with the following equation:

Cost Price = $1334 / (1 - 0.08)

Cost Price = $1334 / 0.92

Cost Price = $1450

Now, to find the selling price that would give a 2.5% profit, we use the equation:

Selling Price = Cost Price × (1 + Profit Percentage)

Selling Price = $1450 × (1 + 0.025)

Selling Price = $1450 × 1.025

Selling Price = $1486.25

Therefore, the shopkeeper should sell the bicycle for $1486.25 to achieve a 2.5% profit.