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Here is the problem,

on selling an article for $76$ dollars merchant loses $4$ dollars, to gain $20$% profit he has to sell it for X dollars.The selling price of the article to gain $20$% is...?

I found it as $96$ but the answer says it as more than $96$,,am I correct ..?

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  • $\begingroup$ Thank you guys...I found the printing mistake as 4% not 4$ so for me the answer was right... $\endgroup$ Aug 18 '14 at 5:55
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If the item is worth $x$, then $76-x=-4\implies x=80$. A $20\%$ profit is then $80\cdot\frac{2}{10}=16$. So the selling price is $80+16=96$. So it seems you are correct.

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Maybe the selling price based on the trade margin has to be calculated. The formula is

$\text{margin(%)}=\frac{\text{selling price - cost}}{\text{selling price}}=\frac{\text{x - 80}}{x}=0.2$

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  • $\begingroup$ @VellankiGaneshBabu Have you seen, that the result of this equation is not $96 ? $\endgroup$ Aug 18 '14 at 5:59
  • $\begingroup$ yes it is 95 if 4% loss (not 4$), I mean I have calculated it. $\endgroup$ Aug 18 '14 at 6:07
  • $\begingroup$ @VellankiGaneshBabu Did you used the formula, which I have posted ? The calculation and the result is different from yours and Joel Bosvelds. What have you calculated ? $\endgroup$ Aug 18 '14 at 6:29
  • $\begingroup$ I have used your formula for the calculation of profit margins(subsequent formulas), I meant nice timing in Bad context though... $\endgroup$ Aug 18 '14 at 9:34
  • $\begingroup$ @VellankiGaneshBabu But I have in both cases (4%,$4) different results. That is why I asked for a calculation. $\endgroup$ Aug 18 '14 at 9:55

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