Question

marjorie bought a bed with a sticker price of $1800. if she paid $25 a week for 2 years, what was the approximate markup rate on the bed?

A. 30.8%
B. 27.8%
C. 44.4%
D. 72.2%

Answer 1

To find the approximate markup rate on the bed, we first need to determine the total amount Marjorie paid over 2 years and then calculate the markup based on the sticker price.

1. **Calculate the total amount paid:**
- Marjorie paid $25 per week for 2 years.
- There are 52 weeks in a year, so over 2 years, there are:
\[
52 \text{ weeks/year} \times 2 \text{ years} = 104 \text{ weeks}
\]
- Therefore, the total amount paid is:
\[
25 \text{ dollars/week} \times 104 \text{ weeks} = 2600 \text{ dollars}
\]

2. **Calculate the cost (markup calculation):**
- The sticker price of the bed is $1800.
- The markup amount (the difference between what she paid and the sticker price) is:
\[
2600 \text{ dollars} - 1800 \text{ dollars} = 800 \text{ dollars}
\]

3. **Calculate the markup rate:**
- The markup rate can be calculated using the formula:
\[
\text{Markup Rate} = \left( \frac{\text{Markup Amount}}{\text{Cost}} \right) \times 100
\]
- Plugging in the values:
\[
\text{Markup Rate} = \left( \frac{800}{1800} \right) \times 100 \approx 44.44\%
\]

Based on the calculation, the approximate markup rate on the bed is \( 44.4\% \).

Thus, the correct answer is:
**C. 44.4%**