After having to pay increased income taxes this year, Edmond has to sell his BMW. Edmond bought the car for $49,000, but he sold it for a 20% loss. What did Edmond sell the car for?

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Answer 1 · 2016-10-23T14:46:08

Edmond sold the car for #$39,200#

Gain or Loss percentage is calculated using the formula

#P = ((O - N) / O) * 100 #

Where:

#P =# Percent profit or loss
#O =# Original Price
#N =# New Price

So we know:

#20 = (($49,000 - N) / ($49,000)) * 100#

Solve for #N#:

#20 / 100 = ($49,000 - N) / ($49,000)#

#0.2 * $49,000 = $49,000 - N#

#N = $49,000 - $9,800#

#N = $39,200#

Edmond sold the car for #$39,200#.