# Percentage Increase and Decrease

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?

• 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 $p$. Dec 9, 2014 at 9:57
So if 100USD is price+12% then $(1.12)price=100$ and so $price=89.29$ (to 2 d.p.).
• 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?