Question

A car dealer purchases a car for $5,000 and sells for $6,600 what is his percentage profit? Round your answer to the nearest whole percent

Answer 1

32%

Explanation:

The percentage profit is the ratio of profit to original cost, expressed as a percentage. The profit is the difference between the selling price and the cost.

profit = selling price - cost

profit = $6600 -5000 = $1600

The ratio of that to cost is ...

$1600/$5000 = 0.32

As a percentage, that is ...

0.32 × 100% = 32%

The car dealer's profit was 32% of his cost.