Answer to Question #163147 in Financial Math for saleemaslam

Question

Question 1 (8 marks)

An appliance that cost a retailer $1,800 less trade discounts of 37.5% and 18%, carries a price tag with a regular selling price at a markup of 120% of cost. For quick sale, the item was marked down 40%.

a.  What is the net price of the appliance? ___________

b.  What is the regular selling price? __________

c.  What is the sale price? __________

d.  What rate of markup based on cost was realized? ___________ 

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Answer 1

a)

$\frac{1800}{1-(0.375+0.18)}=4045~\text{}$$,

b)

$1800\cdot(1+1.20)=3960~$ $,

c)

$3960\cdot(1-0.40)=2376~$ $,

d)

$1-(1+1.20)\cdot(1-0.40)=0.32=32~$%.