Math Is Fun Forum

coolboyx12

Member

From: Usa

Registered: 2023-03-10

Posts: 35

financial arithmetic problem, please help me.

The price of a mobile including markup is Rs 15600. If the markup rate is 7% per annum, find the amount of markup for 2 years.

What is the answer to this question please help if you can.

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Bob

Administrator

Registered: 2010-06-20

Posts: 10,346

Re: financial arithmetic problem, please help me.

hi

So is this asking for two markups of 7% each?

I've never heard of a markup 'per annum'. Usually a good is purchased at a cost price and then a markup is added to achieve the selling price.

So if an item cost 100 and the markup was 7% it would be advertised for sale at 107.

I tried google and found this:

The per annum interest rate refers to the interest rate over a period of one year with the assumption that the interest is compounded every year. For instance, a 5% per annum interest rate on a loan worth $10,000 would cost $500. A per annum interest rate can be applied only to a principal loan amount

This clearly is referring to loans with compound interest.  Goods for sale are not usually sold with a compound interest markup but I suppose you could do this.

The question says:

The price of a mobile including markup is Rs 15600. If the markup rate is 7% per annum, find the amount of markup for 2 years.

So we're told the sale price is 15600. If this question means add a second year's markup then it would seem to mean add another7%.

But do we add it to the original cost price (option 1) or to the already markup-ed up price  (option 2)

If option 1: Work back to find the markup (cost = 15600 x 100/107 then markup = 15600 - cost price) and double this.

If option 2: Do the above to get the first year's markup and then add another 7% of 15600.

What a confusing question! no wonder you wanted help. Sorry I am unable to be more definite. Where did it come from?

Bob

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

coolboyx12

Member

From: Usa

Registered: 2023-03-10

Posts: 35

Re: financial arithmetic problem, please help me.

Bob thank you so much!!, the answer was from the option.1 method where you said work back to find markup (cost = 15600 * 100/107 then markup = cost price) and double this also this question was from
my schoolbook and thank you again for helping me.

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Prime casual Dating