A car dealer buys a car for $8,500 and wishes to make a 35% profit. At what price should the car be sold?

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Question

A car dealer buys a car for $8,500 and wishes to make a 35% profit. At what price should the car be sold?

Accepted Answer

$11,475 — Award 1 mark for correct answer. Method: selling price = cost price × 1.35 = 8500 × 1.35 = 11,475. Alternatively: profit = 8500 × 0.35 = 2975; selling price = 8500 + 2975 = 11,475. A is incorrect — this is the profit amount only. C is incorrect — rounding error or approximation. D is incorrect — significant calculation error.

Answer

$14,450

Answer

$11,475

Answer

$11,500

Answer

$2,975

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