Diana bought a car for $5000 and plans to sell it to make a 20% profit. What should she sell it for to make the profit she desires? A) $1,000 B) $4,000 Eliminate C) $5,100 D) $6,000
The correct answer is $6,000. The profit wanted is 20% which is 0.20 as a decimal. You would multiply 5000·0.20 to get 1000. This is the profit she wants to make so you add it back to the cost of 5000 to get a selling price of $6000.
