Question

(49) An electronics store sold a home sound system at a profit of

$500. If this was an increase of 20% over what the store paid for
what was the cost of the system?

Answer 1

Let's denote the cost of the system as "C".

Given that the store sold the system at a profit of $500, and this profit is 20% of the cost (since it's a 20% increase over what they paid), we can set up an equation:

Profit = Selling Price - Cost
$500 = $C + 0.20C

Solving for C:
$500 = $C * 1.20
C = $500 / 1.20

C ≈ $416.67

So, the approximate cost of the system was $416.67.