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#1 2023-03-15 03:07:32

coolboyx12
Member
Registered: 2023-03-10
Posts: 34

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.


It pays to keep an open mind, but not so open your brains fall out. - Carl Sagan.

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#2 2023-03-15 03:33:05

Bob
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Registered: 2010-06-20
Posts: 9,903

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


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 smile

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#3 2023-03-15 17:57:36

coolboyx12
Member
Registered: 2023-03-10
Posts: 34

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.


It pays to keep an open mind, but not so open your brains fall out. - Carl Sagan.

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