Question

A car seller buys a car from a manufacturer for $10,000. He increases the cost by 5 percent. What is the markup amount?

Answer 1

We know that:

The markup is the price added to the cost price of goods...

To find the markup, we must multiply the percent increase by the original price (before markup).

So:

10,000 x 5% (or 0.05) = ?

10,000 (You do not have to follow my way of multiplying, do what is comfortable for u)
x       5 (Ignore the decimals then we move it after we get the answer) 
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50,000 move the decimal back 2 places so it is 500

The final answer is:

The markup amount is $500...