Problem Solving

1. A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 25 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15

2. Four cups of milk are to be poured into a 2-cup bottle and a 4-cup bottle. If each bottle is to be filled to the same fraction of its capacity, how many cups of milk should be poured into the 4-cup bottle?
(A) 2/3
(B) 7/3
(C) 5/2
(D) 8/3
(E) 3



3. On July 1, 1982, Ms. Fox deposited $10,000 in a new account at the annual interest rate of 12 percent compounded monthly. If no addi¬tional deposits or withdrawals were made and if interest was credited on the last day of each month, what was the amount of money in the account on September 1, 1982?
(A) $10,200
(B) $10,201
(C) $11,100
(D) $12,100
(E) $12,544

1) selling price = 60 + .25*60 = 75.
Final price after discount = .8 * 75 = 60
Gross profit = 0

2) Let x be the fraction that each cup needs to be filled to
2x + 4x = 4
x = 2/3

3) Interest for first month = 10,000 * 12/100 * 1/12 = 100
Amount as of Aug 1 = 10000 + 100 = 10100

Interest for second month = 10100 * 12/100 * 1/12 = 101
Amount as of Sep 1 = 10100 + 101 = 10201

I think for the first problem the text says "markup that was 25 percent of the selling price" not from the merchant price.