Basic HTML Version
Q
uantitative
R
easoning &
P
roblem
S
olving
354
© 2014 Pacific Crest
W
hat Do You Already Know?
Tapping into your existing knowledge
1. How do you change a percent to a decimal or a decimal to a percent?
2. How do you find the percent of an amount?
3. How do you find the unit price of a product?
4. How do you calculate the price of an item after a 25% discount?
5. How is the selling price of a textbook calculated if the bookstore uses a 35% markup?
M
athematical Language
Terms and notation
discount
— an amount subtracted from the full or standard amount of a price or debt
markup
— an amount added to the cost price of an item to obtain the selling price of the item in order
to cover expenses and profit.
sales tax
— tax calculated on the retail price of an item, collected by the retailer and passed on to the state.
sales tax rate
— the percent of the retail price of an item that is to be collected as sales tax.
unit price
— the cost per unit of measure (per ounce, gallon, pound, etc.)
M
ethodology
C
alculating
P
rices after
S
uccessive
M
arkups
,
D
iscounts
,
and
/
or
T
axes
Scenario:
Nimble Fingers Craft Shop was having an after-Christmas sale where all Christmas
items were 60% off. In addition, a shopper had a coupon from the newspaper giving
her 25% off the sale price of any one item. If the wreath she bought was originally
$20, and the sales tax was 5%, how much should she have paid for the wreath.
Step
Explanation
1.
Determine the original
price
If the original price is not given, then compute the original price as
the markup added to the cost.
WATCH
IT WORK!
The original price is given as $20.
2.
Determine the best buy
for any items that come in
various sizes/prices
Find the unit prices of the various choices. Compare these unit
prices in order to determine the best buy.
There is only one item involved here.
3.
Total the prices of all items
If there is more than one item involved in the purchase, find the
sum of all the prices.
There is only one item involved here.