Chapter 6.5, Problem 16IP

To determine

To find: Selling price.

Answer to Problem 16IP

Selling price $=$$\$598.8$

Explanation of Solution

Given information:

Cost price $=\$499$

Markup percent $=20\%$

We know

Selling price $=$ Cost price $+$ Markup

Given

Markup is $20\%$ of cost price that is $\$499$

Therefore,

Markup $=\left(\frac{20}{100}\right)\times 499$

  $\Rightarrow$ Markup $=\left(0.2\right)\times 499$

  $\Rightarrow$ Markup $=99.8$

Therefore,

Selling price $=$$\$499+\$99.8$

  $\Rightarrow$ Selling price $=$$\$598.8$