Question

John paid $450 for a new mountain bicycle to sell in his shop. He wants to price it so that he can offer a 10% discount but still make 30% of the price he paid for. At what price should the bike be marked $?

Answer 1

Answer:

$643.50

Step-by-step explanation:

Let i be the profit realized from the sale and d be the discount made on the sale:

#John's selling price can be calculated by first adding profit, i to $450, the d to the new price as:

$P_n=P_o(1+i)+d[P_o(1+i)]\\=450(1+0.3)+0.1[450(1+0.3)]\\\\\\=450\times 1.3+0.1(450\times1.3)\\\\=585+58.5\\\\=643.50$

Hence, John will resell the bike at $643.50