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| Math Central | Quandaries & Queries |
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Penny
Question from gaurav, a parent: In the following, which calculation is right to calculate the profit percent. |
Gaurav,
You need to ask yourself "20% of what?"
If you purchase an item for $100 and you want your profit to be 20% of what you paid for it then you would charge your customer $100 * 1.2 = $120.
If you purchase an item for $100 and you want your profit to be 20% of what your customer pays for it then you would charge your customer $100/0.8 = $125.
Penny
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