Question

Sue’s Corner Market has a markup of 60% on bottled water. If the market sells a bottle of water for $2, find the original amount that Sue pays.

a) $0.80
b) $1.00
c) $1.25
d) $1.20

Answer 1

The original amount that Sue pays for bottled water is $1.25.

Step-by-step explanation:

To find the original amount that Sue pays for bottled water, we need to determine the cost price before the 60% markup. Let's denote the original amount as x.

Given that the market sells the water for $2, and the markup is 60%, we can set up the equation:

x + 60% of x = $2

This equation translates to:

x + (0.6x) = $2

Combining like terms:

1.6x = $2

Dividing both sides by 1.6:

x = $2 / 1.6

Performing the calculation:

x = $1.25

So, the original amount that Sue pays for the bottled water is $1.25.