Question

if a dealer buys a car from a manufacturer for $20,480 and sells it for $26,808...what is his markup? rounded to the nearest tenth as needed...as an integer or decimal

Answer 1

To find the markup, substract the price at which the car was bought from the price at which the car was sold:

$26,808-20,480=6328$

To find the markup as a percentage from the original price, set 20,480 to be equal to 100%. If x% represents 6328, then:

$\begin{gathered} \frac{x}{6328}=\frac{100}{20,480} \\ \Rightarrow x=\frac{100\times6328}{20,480}=30.898\ldots \end{gathered}$

To the nearest tenth, 30.898... = 30.9.

Therefore, the markup is equal to 30.9%.