Answer:
$416.67
Step-by-step explanation:
Given:
- A merchant sold a radio for $500 and made a profit of 20% on the cost price.
Calculate the cost price.
Cost price = Selling price / (1 + Profit percentage)
20% = 0.2
We take
[tex]\frac{500}{(1 + 0.2)}[/tex] ≈ $416.67
So, the cost price of the radio is $416.67.
