Bunuel wrote:
If the price of a car includes a 20% mark-up, by what percent will the price of the car be reduced if the mark-up is cut in half?
A. \(5\)
B. \(8 \frac{1}{3}\)
C. \(12\)
D. \(14 \frac{1}{3}\)
E. \(15 \frac{2}{3}\)
Let the initial price of car be \(= 100\)
Price of car after \(20\)
% mark-up \(= 120\)
% of \(100 = \frac{120}{100} * 100 = 120\)
If the mark-up is cut in half, ie; \(10\)
%, price of car \(= 110\)
% of \(100 = \frac{110}{100} * 100 = 110\)
Required percentage \(=\) ( Difference of price after mark-up cut \(/\) Price of car after \(20\)
% mark-up ) \(* 100\)
Required percentage \(= \frac{120 - 110}{120} * 100 = \frac{10}{120} * 100 = \frac{25}{3}\) or \(8 \frac{1}{3}\)
Answer (B)...