I am having a kind of a chicken-egg problem.

For example, I am wholesale merchant and I want to sell an orange for \$100 to the end user. I know that the retail merchant adds 12% on top of my price, but the retail merchant should sell it for 100 dollars.

For how much do I need to sell the orange to the retail merchant, so that the end user can buy it for \$100 from retail merchant?

Thanks in advance.

  • $\begingroup$ Hint: If $p$ is the price you sell the product to the retail merchant, then the retail merchant sells the product for $1.12 \times p$ dollars. Since you know the price, you can set up an equation and calculate $p$. $\endgroup$
    – Gaste
    Commented Dec 9, 2014 at 9:57

1 Answer 1


So if 100USD is price+12% then $(1.12)price=100$ and so $price=89.29$ (to 2 d.p.).

  • $\begingroup$ Thanks . How did you arrive the number 1.12 ? $\endgroup$
    – amaz
    Commented Dec 9, 2014 at 10:32
  • $\begingroup$ Well think about it this way. I know that I will want to add 12% to a price when selling to the customer. Hence if $p$ is the original price, i'll add 12% to it, i.e. i'll add $(12/100)p$, so the price i'll be quoting is $p+(12/100)p=(112/100)p=1.12p$. Makes sense? $\endgroup$
    – rbm
    Commented Dec 9, 2014 at 10:40

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