Algebra problem

Question

The selling price of a refrigerator is 711.90.the markup is 5%of the dealers cost .what is the dealers cost

Answer 1

Dealer's cost plus 5% = selling price

Let c = dealer's cost and p = selling price

Then,

c + c*0.05 = p

c*( 1+ 0.05) = p

c = p/1.05 = 711.90/1.05 = $678.00

To check: 678 * 1.05 = 711.90