SOLUTION: Mwongera bought a wrist watch at sh 1000 and marked it at a price such that after allowing his customer a 12% discount he will make a profit of 32% . Find the price at which the wa

Algebra ->  Finance -> SOLUTION: Mwongera bought a wrist watch at sh 1000 and marked it at a price such that after allowing his customer a 12% discount he will make a profit of 32% . Find the price at which the wa      Log On


   

Question 1173180: Mwongera bought a wrist watch at sh 1000 and marked it at a price such that after allowing his customer a 12% discount he will make a profit of 32% . Find the price at which the watch was marked .
Found 2 solutions by josgarithmetic, Theo:
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
%281000%2B%28p%2F100%29%2A1000%29-0.12%281000%2B%28p%2F100%29%2A1000%29=1.032%2A1000
Simplify and solve for p.

Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
cost is 1000
sale price is markup price minus 12% of markup price = .88 * markup price.
profit is 32% of cost = .32 * 1000 = 320
sale price minus cost = profit = 320
since sale price = .88 * markup price and cost = 1000, then:
.88 * markup price minus 1000 = 320
add 1000 to both sides of this equation to get:
.88 * markup price = 1320
divide both sides of this equation by .88 to get:
markup price = 1320 /.88 = 1500

the price at which the watch was marked was 1500.
a discount of 12% was applied to get a sale price of .88 * 1500 = 1320
the profit was 1320 minus 1000 = 320
the profit margin was 320 / 1000 = .32 = 32%.