Mr Tan sold a car for $54 000, making a 20% profit on what he paid for it. He then bought a second car at a 10% discount off its marked price. The discount he received was equal to the profit he made on the first car. What was the marked price of the second car?
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Worked Solution
Step 1: Find the cost price of the first car.
Selling price = $54 000 at 20% profit.
Cost price = $54 000 ÷ 1.20 = $45 000
Step 2: Find the profit on the first car.
Profit = $54 000 − $45 000 = $9 000
Step 3: Set up the equation for the second car.
The discount on the second car = profit on first car = $9 000.
Discount = 10% of marked price.
10% × marked price = $9 000
Step 4: Find the marked price of the second car.
Marked price = $9 000 ÷ 0.10 = $90 000
Answer: $90 000
Correct answer: $90 000
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