Step by step
The question
Question: A shop buys a chair for $80 and marks it up 45%.
What is the selling price?
1 Find the markup
Percent means out of 100.
So 45% is 45 divided by 100: 0.45.
The point moves 2 places to the left.
45% = 45 ÷ 100 = 0.45
The markup is 45% of $80.
"Of" means times: 0.45 times $80.
That is $36.
markup = 0.45 × $80 = $36
To multiply decimals: first 45 times 80, as whole numbers.
That is 3600.
Then count the decimal places: 2.
So it is 36.00.
45 × 80 = 3600
2 decimal places: 36.00
Careful!
45% is not $45.
It is 45% of the price.
Careful: not $80 + $45 = $125 ✗
2 Add it on
A markup is added to the cost.
$80 plus $36 is $116.
selling price = $80 + $36 = $116
So the selling price is $116.
3 Check
Let's check another way: the selling price is 100% plus 45%: 145% of the cost.
1.45 times $80 is $116.
The same.
So the answer is right!
100% + 45% = 145%: 1.45 × $80 = $116
Let's look back.
First: find the markup.
Then: add it on.
Last: check.
Answer
selling price = $80 + $36 = $116