Final answer:
To determine the rate of the markup, divide the markup amount ($520) by the original cost ($5800) and multiply by 100 to get the total percentage markup for 2 years, which is approximately 9%. Then divide this by 2 to get the annual rate, which is about 4.5%, making the closest answer choice 4% (option a).
Step-by-step explanation:
To calculate the rate of the markup that Mr. Amir paid, we can use a similar approach to calculating percentage change or growth rate as in the given reference example. If Mr. Amir paid a markup of $520 on an item that costs $5800, we first determine the percentage of the markup with respect to the original cost. This percentage, which represents the total markup over 2 years, is found by dividing the markup amount by the original cost:
Markup Percentage = (Markup / Original Cost) × 100
Markup Percentage = ($520 / $5800) × 100 = 8.9655…, which we can round to 9% for the total markup over 2 years. However, since we are interested in the annual rate, we divide this percentage by the number of years, which is 2:
Annual Markup Rate = Total Markup Percentage / Number of Years
Annual Markup Rate = 9% / 2 = 4.5%
The closest option to 4.5% is 4%, which is option (a).