NECO 2005 Mathematics · Question 12

A car dealer sells a car and makes a profit of 15%. If the car costs N320,000.00, how much did he sell the car?

Options

A.N272,000.00
B.N296,000.00
C.N300,000.00
D.N368,000.00
E.N400,000.00

Answer: D. N368,000.00

Explanation written with AI and checked against the answer key

Analyze the question: The dealer bought the car for N320,000 (cost price) and sold it at a 15% profit. We need the selling price. Concept: Profit % is calculated on the cost price unless stated otherwise. Selling Price = Cost Price × (100% + Profit %)/100% Solution: Profit = 15% of N320,000 = (15/100) × 320,000 = 0.15 × 320,000 = N48,000 Selling Price = Cost Price + Profit = 320,000 + 48,000 = N368,000 Alternatively: 1.15 × 320,000 = 368,000 ✓ Check against the options: N368,000 matches option D. (Note: Option A, N272,000, is what you get if you subtract 15% instead, which would be a loss. Option B and others are distractors.) Tip: For a profit of x%, multiply the cost price by (1 + x/100). For a loss of x%, multiply by (1 − x/100). Here, a 15% profit means multiplying by 1.15. Always check whether the answer should be bigger than the cost price (profit) or smaller (loss), which helps you eliminate wrong options quickly. Since this is a profit, A, B, and C are immediately ruled out because they are all lower than N320,000.

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