NandishSS wrote:An appliance dealer bought an answering machine at a wholesale price of $90 and then sold it at a 10 percent discount off the retail price. If the dealer made a 20 percent profit on the wholesale price, what was the retail price of the answering machine?
A) $99
B) $108
C) $110
D) $117
E) $120
Profit = 20% of wholesale price = (20/100)(90) = $18.
We can PLUG IN THE ANSWERS, which represent the retail price.
Since the discount = 10% = 1/10, and the profit is an INTEGER VALUE, the correct answer choice must be a MULTIPLE OF 10.
Eliminate A, B and D.
When the correct answer choice is plugged in, a profit of $18 will be yielded.
C: 110
Discounted price = $110 - (10% of $110) = 110 - 11 = $99.
Profit = (discounted price) - (wholesale price) = 99-90 = $9.
Since the profit is too small, the retail price must be GREATER.
The correct answer is
E.
E: 120
Discounted price = $120 - (10% of $120) = 120 - 12 = $108.
Profit = (discounted price) - (wholesale price) = 108-90 = $18.
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