Question

Solve the problem. Suppose that a merchant buys a patio set from the wholesaler for $260. At what price should the merchant mark the patio set so that it may be offered at a discount of 25% but still give the merchant a 20% profit on his $260 investment?

Answer 1

$416

Explanation:

The computation of price set by the merchant is shown below:-

We need to use the equation with the help of given information

Let us assume the price be x

x - 25% of x = $260 + 20% of $260

x - 0.25 x = $260 + 0.20 × $260

x - 0.25 x = $260 + $52 ..... (i) equ

Now we will solve the equation of x

(1 - 0.25)x = $312

0.75x = $312

x = $312 ÷ 0.75

x = $416