SOLUTION: A car is marked up 50% from its wholesale price. During a sale, the retail price is reduced by 20%. What percent higher is the sale price than the wholesale price?

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Question 167629: A car is marked up 50% from its wholesale price. During a sale, the retail price is reduced by 20%. What percent higher is the sale price than the wholesale price?
Answer by gonzo(654) About Me  (Show Source):
You can put this solution on YOUR website!
if the wholesale price is w, then the retail price is w + .5*w = 1.5*w.
let r = retail price
r = 1.5*w
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retail price is reduced by 20%:
r-.2*r = (1-.2)*r = .8*r
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if r = 1.5*w, then
.8*r = .8*1.5*w = 1.2*w
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the retail price was 50% above wholesale.
now the retail price is 20% above wholesale.
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putting this into numbers:
let wholesale price = $3000.
retail price is 50% above that.
retail price = $3000 + $1500 = $4500.
take 20% off $4500.
.2 * $4500 = $900
$4500 - $900 = $3600 equal retail price with 20% taken off.
$3600 discounted retail price is $600 over the wholesale price of $3000 which equals 20% of the wholesale price.
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