Problema Solution
Stevie bought a stereo for $270 and put it on sale at his store at a 70% (or 0.7) markup rate. What was the retail price of the stereo?
Answer provided by our tutors
The markup is 70% of the $270 cost, so the markup is:
(0.70)(270) = 189
Retail price = Cost + Markup
Retail price = 270 + 189
Retail price = $459
The retail price of the stereo is $459.