You were given the final price and must find the original cost to the seller. I like to think of these in terms of perentage problems with the percentage formula. 80 over what amount is equal to 125%?
80/x = 5/4 (multiply each side by x)
80 = 5/4x (Divide each side by 4/5 now to get x alone)
80 (4/5) = x, x = $64 (This is your original price of the item)
Don't forget the final step of $80-$64 = $16 of profit.
Gross Profit-GMATPREP1
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sudhir3127
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Its 16. U can also use a formula..medea66 wrote:Please advise....
cost price = (100/100 + gain%)* selling price
thus CP = 100/125*80 =64
thus profits is SP- CP
80 -64 = 16.
Hope it helps..
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California4jx
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there are multiple ways and all above are correct solution. Another is as followsmedea66 wrote:Please advise....
Final Sale with 25% profit = $80
cost (1.25 ) = $80
cost = $80/1.25 = 80*4/5 = $64
Profit = Final Sale - Cost = $80 - $64 = $16
I did use the percent formula, my problem was that I was trying to find out 25% of 80 instead of 125% of 80. So I guess whenever there are percents involved w/ trying to find original something, the "1" should be added in front of the percent given
