Question

19. Markup Solve for r in the formula M = L + rL where M is the markup price, L is

the list price, and r is the discount rate.
a. An item with a list price of $63.80 is marked up to $121.80. Find the discount
rate. Round your answer to the nearest whole percent.
b. An item with a list price of $65 is marked up to $146.25. Find the discount rate.

Answer 1

Explanation:

M = L + rL

a.

L = $63.80

M = $121.80

need to find r

121.80 = 63.80 + r×63.80

58 = r×63.80

r = 58/63.80 = 0.91 = 91%

b.

L = $65

M = $146.25

need to find r

146.25 = 65 + r×65

81.25 = r×65

r = 81.25/65 = 1.25 = 125%