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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

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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 880ataprofitof25880 at a profit of 25%. This means that 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 = 880(100/125)=880 * (100/125) = 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 * 704=704 = 985.6

So, the new selling price should be approximately $986.

Therefore, the correct option is $986.

This problem has been solved

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