cost price of a refrigerator

Question

The selling price of a refrigerator is $589.05. If the markup is 5% of the dealer's cost, what is the dealer's cost of the refrigerator?

Answer 1

If we add 5% to something, we now have 105%, right?

1.05p = 589.05

p = 589.05/1.05

p = $561

Answer 2

589.05 = P(1.05)

P= 589.05/1.05

= $561

markup = 589.05-561 = $28.05

28.05/561 = 0.05 = 5%