A dealer sold a radio at a loss of 2.5%.Had he sold it for 100 dollars more he would have gained 7.5% For what value should he sell it in order to gain 12 1/2 % ?
My solution by my book formulae is Selling price = More Dollar (100+final gain)/(gain%+loss%) =100(112.5)/7.5+2.5 =1125
Please suggest easier solutions !
$\$100$ is clearly $10\%$ of the original price the dealer bought the radio for (the difference between $97.5\%$ and $107.5\%$) That means he bought it for $\$1000$. To have a gain of $12.5\%$, he must sell it for $\$1125$.