A store pays$94 for a hammock.The store marks up the price by 5% . What is the new price?

Question

I need help on this word problem it is so confusing for me so i really need help. And thank you for trying your best on helping me on doing you math word problem. 

 

 

Answer 1

The effect of a 5% markup is to multiply cost (for store to acquire) a commodity by 1.05

 

1.05 consists of 1 + 0.05; multiplying by this number has a two-fold effect:

 

a) multiplying by one, i.e. keeping the original cost as part of the price, and

 

(b) multiplying by the number 0.05, which is the decimal value of five percent.