A trader sells a television for $880 at a profit of 25%. If the profit percentage is to be increased to 40%, what should be the new selling price (approximately)? Options $920 $986 $960 $1040
Question
A trader sells a television for $880 at a profit of 25%. If the profit percentage is to be increased to 40%, what should be the new selling price (approximately)?
Options $920
$986
$960
$1040
Solution
To solve this problem, we first need to find the cost price of the television.
We know that the trader sells the television for 880 is 125% of the cost price.
So, we can set up the equation: 125/100 * Cost Price = $880
Solving for Cost Price gives us: Cost Price = 704
Now, if the trader wants to increase the profit to 40%, the new selling price would be 140% of the cost price.
So, the new selling price would be: 140/100 * Cost Price = New Selling Price 140/100 * 985.6
So, the new selling price should be approximately $986.
Therefore, the correct option is $986.
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