Question

(6) If the selling price of a new car at a car dealership is $28,000, after the * 2 pc

dealership marked the cost of the new car up by 40%, what was the cost of
the new car?

Answer 1

The original cost of the new car was $20,000.

Step-by-step explanation:

To find the original cost, we'll use the formula for calculating the final price after a percentage increase:

Final Price = Original Cost + (Original Cost * Percentage Increase)

In this case, we need to solve for the Original Cost, so we'll rearrange the formula:

Original Cost = Final Price / (1 + Percentage Increase)

Then we substitute the values given:

Original Cost = $28,000 / (1 + 0.40)

Original Cost = $28,000 / 1.40

Original Cost = $20,000

Therefore, the original cost of the new car before the markup was $20,000.