SOLUTION: A dealer bought a car and sold it to Alex at a profit of $2,500. After one year, Alex sold it to Betty at a loss of 6%. If Betty paid $21,150 for the car, find the dealer's percent

Question 475475: A dealer bought a car and sold it to Alex at a profit of $2,500. After one year, Alex sold it to Betty at a loss of 6%. If Betty paid $21,150 for the car, find the dealer's percentage profit.
Answer by Edwin McCravy(20054) (Show Source): You can put this solution on YOUR website!
A dealer bought a car and sold it to Alex at a profit of $2,500. After one year, Alex sold it to Betty at a loss of 6%. If Betty paid $21,150 for the car, find the dealer's percentage profit.

Let x = what the dealer paid for the car.

Alex paid x + 2500 for the car

Since Alex lost 6%, he sold the car to Betty for only
100% - 6% or 94% of what Alex paid the dealer.

IOW, Betty paid Alex only 94% of what Alex paid the dealer for it.
So

94% of what Alex paid the dealer = what Betty paid Alex

                   .94(x + 2500) = 21150

Solve that and get $20000, which is what the dealer paid for the car.

To find the dealer's percentage profit, the question is:

What percent of $20000 is $2500?

Let p = the percent profit the dealer made, expressed as a decimal.

                  20000p = 2500
                       p = 2500/20000
                       p = .125 or 12.5%

Edwin

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