Donna and Rod bought a new van at an end of year sale for dealer cost plus 5%. If they paid $17,325.00 what was the dealer cost in dollars?
16458.75
I disagree with Logan's answer,
take 5% of it and add it to his answer, you will not get $17 325
the $17 325 represents 105% of the dealer cost
so dealer cost = 17325/1.05 = $16 500
Reiny is right.
To determine the dealer cost in dollars, we need to subtract the 5% markup from the total amount paid by Donna and Rod. Here's how you can calculate it step by step:
Step 1: Calculate the total amount including the markup:
Total amount paid = Dealer cost + 5% markup
Step 2: Convert the 5% markup into a decimal:
5% = 5/100 = 0.05
Step 3: Use the formula to find the dealer cost:
Dealer cost = Total amount paid - 5% markup
Now, let's substitute the given values into the formula:
Dealer cost = $17,325.00 - 0.05($17,325.00)
Calculating the 5% markup:
0.05($17,325.00) = $866.25
Substituting this value into the formula:
Dealer cost = $17,325.00 - $866.25
Final Calculation:
Dealer cost = $16,458.75
Therefore, the dealer cost of the new van is $16,458.75.