College Math

= 60 100 ∗ 50 = $30 Retail price = purchase price + mark up = 50 + 30 = $80 Alternatively, we know that 100% of price is 50, adding markup of 60%, we get the retail price as: = 160 100 ∗ 50 = $80 Taxation is calculated the same way as markup. The amount of taxation is added to the sale price. For example, if a restaurant meal costs $45, the tip is 10%, and there is a 5% sales tax, find the total cost of the meal. Now we can either calculate both these amounts individually and add them to the meal price, or simply add the percentage to 100% of the meal price. That is: 100% of meal price = 45 Adding tip and sales tax, 100% + 10% + 5% = 115% Hence, the total cost of meal becomes 115 100 ∗ 45 = $51.75 Sometimes, we may have to do backward calculation as well. For instance, the list price of a TV is $5500, inclusive of tax of 10%. In that case, we know that 100% + 10% = 110% = 5000. 110% of price = 5000 ℎ = 5000 110 ∗ 100 = $5000 Amount of tax = 10% of 5000 = (10/100)(5000) = $500

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