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27 Feb 2018, 23:50
00:00

Difficulty:

5% (low)

Question Stats:

89% (00:46) correct 11% (00:51) wrong based on 37 sessions

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A certain radio costs a merchant $72. At what price must the merchant sell this radio in order to make a profit of 20%? (A)$86.40

(B) $92 (C)$90

(D) $144 (E)$148

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Re: A certain radio costs a merchant $72. At what price must the merchant [#permalink] ### Show Tags 28 Feb 2018, 00:28 Bunuel wrote: A certain radio costs a merchant$72. At what price must the merchant sell this radio in order to make a profit of 20%?

(A) $86.40 (B)$92

(C) $90 (D)$144

(E) $148 If the radio costs the merchant$72, in order to make a profit of 20%,

the merchant would have to sell the radio at 1.2*$72 =$86.40

Therefore, the merchant must sell the radio at $86.40(Option A) to make a profit of 20% _________________ You've got what it takes, but it will take everything you've got e-GMAT Representative Joined: 04 Jan 2015 Posts: 3074 Re: A certain radio costs a merchant$72. At what price must the merchant  [#permalink]

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28 Feb 2018, 11:30
1

Solution

We are given:

• Profit= 20% of cost price
• Cost= $72 We need to find: • Selling price such that merchant makes a profit of 20% We know, • Selling price= Cost price + profit • Selling price= Cost price+ 20% of cost price • Selling price=$72+20/100* $72 • Selling price=$72+ 0.2* $72 • Selling price=$72+$14.40 • Selling Price=$86.40

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Re: A certain radio costs a merchant $72. At what price must the merchant [#permalink] ### Show Tags 01 Mar 2018, 18:34 Bunuel wrote: A certain radio costs a merchant$72. At what price must the merchant sell this radio in order to make a profit of 20%?

(A) $86.40 (B)$92

(C) $90 (D)$144

(E) $148 We can let R = revenue and create the equation: R - 72 = 0.2(72) R - 72 = 14.4 R = 86.4 Answer: A _________________ # Scott Woodbury-Stewart Founder and CEO Scott@TargetTestPrep.com 122 Reviews 5-star rated online GMAT quant self study course See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button. Intern Joined: 16 Feb 2019 Posts: 6 Re: A certain radio costs a merchant$72. At what price must the merchant  [#permalink]

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22 Jun 2019, 21:54
Profit%= 20%
C.P.=$72 Profit= Profit% of C.P. = 20/100 * 72 =$14.40
S.P. = C.P. + Profit
= 72 + 14.40
= $86.40 Hence Option(A) Intern Joined: 03 Apr 2018 Posts: 29 Re: A certain radio costs a merchant$72. At what price must the merchant  [#permalink]

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22 Jun 2019, 22:44
It seems like a very simple question. Then, the idea should be how quickly one solves this.

Selling price = Cost price + Profit = $$72 + \frac{20}{100} = 72 + \frac{1}{5}$$

Looking at the numbers, we can see we will get a decimal answer if we go through with the calculation. A quick peek at the options show that only option A has decimal. So that should be the answer.

Is this one of the right approaches to save few precious seconds?