Calculate the cost of the pen to the nearest cent

Question

A merchant sold a pen for $\$6.90$, thereby making a profit of $15\%$ on her cost calculate the cost of the pen to the merchant to the nearest cent.

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So I know the merchant made a $15\%$ profit on the pen, so she bought it for a cheaper price. To find the cost of the pen before I have to take the price now, $\$6.90$ and times it by $85\%$, this gives $\$5.87$.

Is this correct?

Answer 1

If there is a 15% profit, that means that 6.90 was 115% of the original price. What would 100% of the price be?

Answer 2

If we call the price $p$, You know that $1.15\times p = 6.90$ so you would need to solve this equation for $p$ by dividing each side by $1.15$ giving you $p = \frac{6.90}{1.15} = \$6$