A Retailer Buys a Particular Product for $4

question 99

Multiple Choice

A retailer buys a particular product for $4. To make a profit, the retailer adds $2 to cover operating expenses and provide a profit. The percentage markup on the $6 selling price is

• A) 50 percent.
• B) 33.33 percent.
• C) 100 percent.
• D) 20 percent.
• E) 25 percent.

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Definitions:

Initial Deposit

The first sum of money placed into an account or investment, serving as the starting balance.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Future Value

The future value of a current asset, calculated by applying an estimated growth rate over a specific period.

Interest Rate

The percentage charged on a loan or paid on an investment, representing the cost of borrowing or the income from lending.