A car dealer normally lists cars at 25% above cost. During a sale the manger offered a 10% reduction. If a car sold for $20,812.50, what was the cost price to the dealership?
A) $18,500
B) $23,125
C) $18,315
D) $16,650
E) $17,250

Question

Quizplus · Accepted Answer

The car was initially marked up by 25% above cost and then offered at a 10% reduction. To find the cost price, we can set up the equation: $ \text{Cost Price} \times 1.25 \times 0.9 = \$20,812.50 $. Solving for the cost price gives us \$18,500.

A Car Dealer Normally Lists Cars at 25% Above Cost