Multiple choice

The manufacturing cost of a car is 'n' dollars. The manufacturer sells the car to a retailer at a profit of 5 percent. If the retailer sells the car to a customer at 10 percent margin, what amount did the customer pay for it?

  1. 1.050n

  2. 1.150n

  3. 1.155n

  4. 1.515n

  5. 1.151n
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost to retailer = n * 1.05. Retailer sells at 10% margin on that cost: (n * 1.05) * 1.10 = n * 1.155.

AI explanation

Using the successive selling price formula, the manufacturer sells the car to the retailer for 1.05n dollars. The retailer then applies a 10 percent margin on this new cost, making the customer price 1.10 times 1.05n. Multiplying these gives 1.155n, which is the final amount the customer paid.

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