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

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

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.

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

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

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

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