A retailer buys goods worth $55 each. She adds a mark-up of 25% and then 10% GST on top of this to calculate her selling price.

What is the final price, correct to the nearest cent?
Ans = 75.63

I got 74.25
(55 *0.25 + (55*0.1)) + 55 was my workings out.
I'm pretty sure I messed up understanding the question so could someone please explain? Thank you :)

Question

A retailer buys goods worth $55 each. She adds a mark-up of 25% and then 10% GST on top of this to calculate her selling price.

What is the final price, correct to the nearest cent?
Ans =  75.63

I got 74.25
(55 *0.25 + (55*0.1)) + 55 was my workings out.
I'm pretty sure I messed up understanding the question so could someone please explain? Thank you :)

skullpatrol · Answer

Think about what "10% GST on top of this" means?

 Specifically what does "this" refer to?

skullpatrol · Answer

A retailer buys goods worth $55 each. She adds a mark-up of 25% 

$55 + $55 *0.25  = mark-up price

skullpatrol · Answer

...and then 10% GST on top of this (mark-up price) to calculate her selling price.

anonymous · Answer

So its (55 + 55 *0.25) * 1.1! *Fist pumps into air* I get it now, thanks again for your help skullpatrol, you're a lifesaver :D

skullpatrol · Answer

Nice work :-)

anonymous · Answer

Thank you, same to you, I really appreciate it :)

skullpatrol · Answer

:D