SOLUTION: A merchant paid $30 for an item. He wishes to place a price tag on it so that he can offer a 10% discount on the price marked on the tag AND still make a 20% profit on the cost

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: A merchant paid $30 for an item. He wishes to place a price tag on it so that he can offer a 10% discount on the price marked on the tag AND still make a 20% profit on the cost      Log On


   

Question 529119: A merchant paid $30 for an item.
He wishes to place a price tag on it so that he can offer a
10% discount on the price marked on the tag
AND
still make a 20% profit on the cost of the item.
What price should he mark on the tag? Show or explain how you got your answer.

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
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Let x be final price.
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After 10% discount price would be 0.9x.
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20% profit on $30 purchase = 1.2*30
Equation:
1.2*30 = 0.9x
0.9x = 36
x = $40.00 (final price)
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Cheers,
Stan H.
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