How much did Apex Autos charge for the customer's old car?

Apex Autos acquired a new car from the manufacturer for an invoice price of $21,930.00, and they marked up the car by 14% to arrive at a sticker price. A customer then came into Apex Autos, traded in her old car, and purchased this new car. She paid the sticker price minus the amount of money she was given for her old car, which was $7840.00. Apex Autos then marked up the customer's old car by 22% and sold it to somebody else.

1 Answer
smendyka
Feb 25, 2018

See a solution process below:

Explanation:

First, we need to determine the sticker price of the new car. The formula for finding the selling price is:

#s = c + (c * m)#

Where:

#s# is the selling price or in this problem the sticker price: what we are solving for in this problem.

#c# is the cost of the item or in this problem the invoice price: $21,930.00 for this problem.

#m# is the mark up percent: 14% for this problem. "Percent" or "%" means "out of 100" or "per 100", Therefore 14% can be written as #14/100#.

Substituting and calculating #s# gives:

#s = $21,930.00 + ($21,930.00 * 14/100)#

#s = $21,930.00 + ($307,020.00)/100#

#s = $21,930.00 + $3,070.20#

#s = $25000.20#

We know the Customer paid $7,840.00 for the car after trading in her old car. So we can subtract this from the sticker price to find how much she received for her trade in:

#$25000.20 - $7,840 = 17160.20#

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