Video instructions and help with filling out and completing How Form 2220 Percentages

Instructions and Help about How Form 2220 Percentages

A car dealer bought a car and adds 20% on the cost price and sells it for $15,000 what's the cost price of the car now imagine this is the car that the dealer bought for a particular amount okay so we want to find the cost price so we'll say let the cost price be 100 and let the cost price be equal to hundred dollars okay so we'll start there and the profit is 20% the dealer is adding 20% profit on the cost price so prophet s say 20% why it's given to be 20 percent so the selling price is hundred is 20 percent is 100 so that means for every hundred dollars he wants $20 profit so selling price would be hungry which is a cost price plus the profit which is 20 so selling prices 120 dollars okay so this if you want to change this as a person to if you say this is a hundred percent if you call this hundred percent I can say this is 120 percent sorry this is 120 percent if 100 if you cost Parts is 100 we are saying that is our 100 percent so then this would be our 120 percent and we know the selling price of the car is $15,000 so let us find let us write say now so now you can say 120 percent which is the selling price in terms of percentage so is nothing but how many dollars it's $15,000 it's $15,000 and we want to find the cost price so the question is we want to find what 100% okay so our question is what is 100% that is the question okay so let me cancel this so from one twenty percent can I find 10 percent okay Malcolm it aim is to find one hundred percent okay so one twenty percent from one twenty percent I can find ten percent by dividing 120 by which number so 120 divided by what cube what gives you ten so obviously it says that has to be divided by 12 so to get this number you do the same thing fifteen thousand divided by 12 so let's get the calculators out which is fifteen thousand divided by 12 which is $1,250 so 10 percent is one thousand two hundred and fifty dollars so if 10 percent is 1250 from ten percent can I find hundred percent of course this year to multiply the x it by 100 so you do the same thing here times it by not hundreds re times in buy-in because 10 times 10 is 100 so we do the same thing here the times in bit 10 it is 1000 so I had to put two zeros which is twelve thousand five hundred so the cost price of the car is 12,500 so let us come from our answer if the cost price is 12,500 profit is twenty percent of it so you find twenty percent of 112 thousand five hundred I will use a calculator so this is zero twenty percent is 20 out of 100 which is 0.2 times 100 sorry Oh point two times 12,500 so let's get the calculator out so this is zero point two times twelve thousand five hundred which is two thousand five hundred so profit is $2,500 and so the selling price is cost price plus profit CP is cost price plus profit which is twelve thousand five hundred plus 2500 with fifteen thousand dollars so this is how you can calculate and also check your answer and find the original price or working back