Question

A second-hand car dealer bought a car for £3500 and sold it for £4340. Find his percentage mark-up.

a) 12%
b) 20%
c) 24%
d) 28%

Answer 1

To find the percentage mark-up, you calculate the increase in price as a percentage of the cost price. The calculation for this specific case yields a 24% mark-up, making the correct answer c) 24%.

Step-by-step explanation:

To find the percentage mark-up, you need to calculate the increase in price as a percentage of the cost price. The formula for percentage mark-up is:

Percentage Mark-Up = ((Selling Price - Cost Price) / Cost Price) x 100%

Let's calculate the mark-up for this case:

• Cost Price (C) = £3500
• Selling Price (S) = £4340
• Mark-Up (M) = S - C = £4340 - £3500 = £840
• Percentage Mark-Up = (M / C) x 100% = (£840 / £3500) x 100%

After doing the calculation:

Percentage Mark-Up = (840 / 3500) x 100% = 24%

Therefore, the correct answer is c) 24%.