A laptop is sold for $900 after a profit of 25%. What was the cost price?

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Question: A laptop is sold for $900 after a profit of 25%. What was the cost price?

Options:

Correct Answer: $750

Solution:

Let Cost Price = x. Selling Price = x + 25% of x = 1.25x. 1.25x = 900. x = 900/1.25 = 720.

A laptop is sold for $900 after a profit of 25%. What was the cost price?

A laptop is sold for $900 after a profit of 25%. What was the cost price?

Step 1: Understand that the Selling Price (SP) is $900.
Step 2: Know that the profit is 25%. This means the Selling Price is 125% of the Cost Price (CP).
Step 3: Write the relationship between Selling Price and Cost Price: SP = CP + 25% of CP.
Step 4: Rewrite the equation using CP: SP = CP + 0.25 * CP = 1.25 * CP.
Step 5: Set up the equation: 1.25 * CP = 900.
Step 6: To find CP, divide both sides of the equation by 1.25: CP = 900 / 1.25.
Step 7: Calculate the value: CP = 720.

Profit Calculation – Understanding how to calculate the cost price from the selling price and profit percentage.
Percentage Application – Applying percentage increase to determine the relationship between cost price and selling price.