Question

A local electronics store purchases a TV for $120 and wants to make a 25% profit. Can you find the solution to this problem and provide step-by-step calculations to determine the selling price of the TV?

Answer 1

To determine the selling price of the TV for the local electronics store, we need to calculate the profit based on the purchase price and then add that profit to the purchase price.

1. **Determine the purchase price**: The purchase price of the TV is given as $120.

2. **Calculate the profit amount**: The store wants to make a profit of 25% on the purchase price. To find the profit amount, we can use the following formula:

\[
\text{Profit} = \text{Purchase Price} \times \text{Profit Percentage}
\]

Here, we convert the percentage to a decimal for calculation:

\[
25\% = 0.25
\]

Now, substituting the values into the formula:

\[
\text{Profit} = 120 \times 0.25
\]

Performing the multiplication gives:

\[
\text{Profit} = 30
\]

3. **Calculate the selling price**: The selling price can be found by adding the profit to the purchase price. The formula for this is:

\[
\text{Selling Price} = \text{Purchase Price} + \text{Profit}
\]

Substituting the known values:

\[
\text{Selling Price} = 120 + 30
\]

Performing the addition yields:

\[
\text{Selling Price} = 150
\]

Thus, the selling price of the TV is **$150**.