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A car dealer applies a 40% markup to the cost of a car. He then offers 01 Nov 2023, 09:54
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85% (hard)

Question Stats:

54% (02:24) correct 46% (02:19) wrong based on 192 sessions

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A car dealer applies a 40% markup to the cost of a car. He then offers a 20% discount on this marked price. After giving an additional discount of $500 to a buyer, he still secures a profit of $2,500. What is the original marked price of the car?

A. $25,000
B. $27,500
C. $28,000
D. $30,000
E. $35,000
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E
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A car dealer applies a 40% markup to the cost of a car. He then offers 01 Nov 2023, 09:56
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Check all other fresh questions here: https://gmatclub.com/forum/boost-your-g ... l#p3292504
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A car dealer applies a 40% markup to the cost of a car. He then offers 01 Nov 2023, 10:05
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Bunuel
A car dealer applies a 40% markup to the cost of a car. He then offers a 20% discount on this marked price. After giving an additional discount of $500 to a buyer, he still secures a profit of $2,500. What is the original marked price of the car?

A. $25,000
B. $27,500
C. $28,000
D. $30,000
E. $35,000
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OA IS E

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A car dealer applies a 40% markup to the cost of a car. He then offers 01 Nov 2023, 16:56
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Putting the words into equation:

let C be the cost

0.8(1.4*C) - c - 500 = 2500 (equation for the profit)

Solving for C...
C = 25,000

140% * 25,000 = 35,000

Answer E
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A car dealer applies a 40% markup to the cost of a car. He then offers 11 Apr 2024, 12:51
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Bunuel
A car dealer applies a 40% markup to the cost of a car. He then offers a 20% discount on this marked price. After giving an additional discount of $500 to a buyer, he still secures a profit of $2,500. What is the original marked price of the car?

A. $25,000
B. $27,500
C. $28,000
D. $30,000
E. $35,000
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­Let's solve this :)
Let the cost price (CP) be c, then the markup price (MP) will be c+c*(40/100)=1.4c
Discount is 1.4c*(20/100)=0.28c. Therefore, selling price (SP) will be 1.4c-0.28c=1.12c
Final SP is 1.12c-500. Profit is 1.12c-500-c which is equal to 2500.
Therefoe, 0.12c=3000 or, c=25000.
So, MP=25000*0.14=35000. Option (E) is correct.
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A car dealer applies a 40% markup to the cost of a car. He then offers 11 Apr 2024, 19:44
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Given: A car dealer applies a 40% markup to the cost of a car. He then offers a 20% discount on this marked price. After giving an additional discount of $500 to a buyer, he still secures a profit of $2,500.

Asked: What is the original marked price of the car?

Let the originial marked price of the car be $x.

The cost of the car = x/1.4
Discounted price of the car = (100%-20%)x = .8x
After additional discount of $500, the price of the car = .8x - 500
.8x - 500 = x/1.4 + 2500
.8x - x/1.4 = 3000
x(4/5 - 10/14) = 3000
x(56 - 50)/14*5 = 3000
x = 3000*14*5/6 = $35000

IMO E
­
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