Question

An emerald pendant was marked up 150% from an original cost of $488. Last Friday, Cameron bought the emerald pendant and paid an additional 5% in sale tax. What was his total cost?

Answer 1

Given parameters:

Mark up percentage  = 150%

Original cost = $488

Sales tax = 5%

Unknown:

His total cost  = ?

Solution:

Marking up a good is the amount a sell adds to a product which makes its selling price usually for a profit.

 Since the emerald was marked up by 150%;

   New cost  = (1 + 1.5) x $488 = $1220

Now, the additional tax was 5%;

   Tax = $\frac{5}{100}$ x 1220 = $61

So, the total cost = New cost + tax  = $1220 + $61 = $1281