Question

An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?

Answer 1

$120

Explanation:

The dealer's 20% profit amounted to ...

0.20 × $90 = $18

This means the discounted retail price was ...

$90 +18 = $108

This was 10% off the retail price, so was 90% of it.

$108 = 0.90 × retail price

$108/0.90 = $120 = retail price . . . . . divide by 0.90

The retail price of the answering machine was $120.