A men's shoe store uses a markup rate of 115% on its most popular brands of shoes. If the shoe store buys a pair of popular-brand shoes for a wholesale price of $79, what will be the retail price of the shoes, to the nearest cent?
79 * 1.15 = 90.85
To find the retail price of the shoes, we need to calculate the markup amount and add it to the wholesale price.
1. Calculate the markup amount:
Multiply the wholesale price by the markup rate (115% = 1.15).
Markup Amount = Wholesale Price * Markup Rate
In this case,
Markup Amount = $79 * 1.15 = $90.85
2. Add the markup amount to the wholesale price to find the retail price:
Retail Price = Wholesale Price + Markup Amount
In this case,
Retail Price = $79 + $90.85 = $169.85
Therefore, the retail price of the shoes will be $169.85 to the nearest cent.