A dealer buys a TV set for $550 and wishes to sell it at a 20% profit. What should his selling price be?

Question

2. After the dealer marked up the TV 20% he had to give a 20% discount to sell it. What cost did he sell it for?

$600
$580
$660
$672
$528

Answer 1

$550 * (1 + 0.20) = $660

$660 * (1 -0.20) = $528

Done!

Answer 2

$660. If he wants to make a 20% profit, that means he has to sell it at 120% of the price he bought for it. 120% of $550 is $660. (Think about it, he just made $110 profit on a $550 television set. That is a 20% profit).

Part 2: He then had to mark the $660 television down 20%. Basically, that is 80% of the $660 television. That becomes 660x0.8 which is equally to $528.

Answer 3

$550 x 1.2=660. Then 20% discount off 660 is $132 so he sold it for $528 and lost $22.

However if he really wanted to sell it at a 20% profit, he should have been asking $687.50. 687.50 -20% (137.50)=$550. So your five possible answers are really all wrong.

Answer 4

550 times .20=110

550+110= 660

660 times .20=132

660-132=$528

Answer 5

$550 plus 20% profit ( 550+[550*.20])=660
selling cost =660 - [ 660*.20 (discount) ] = 528

Answer 6

$550 = 100%

So 1 % = 550/100

Therefore 120 % (Original price + profit)

= 550/100 x 120

= $660

2. $660 = 100 %

So 1 % = 660/100

Therefore 80 % = 660/100 x 80

= $528

Answer 7

528

Answer 8

528

Answer 9

$528

Answer 10

It's the old rule of thumb mark up mark down theory.
25% up for the 20% down or you will loose money.

550 x 20% =110.00 plus 550 660.
660. x 20% = 132. minus 528.

He should have used the merchants theory. Mark up 25% and mark down 20 %.
He lost money.

Answer 11

550 100
x 20----->x=2.550/100=110$(20%profit)

550+110=660$ (hes sellin price)