By selling an object at $10, you earn "m%" of the purchase price. What percentage (%) do you earn when you sell it at $11? Express formula for calculation and explain why.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Course: Financial Mathematics
By selling an object at $10, you earn "m%" of the purchase price. What percentage (%) do you earn when you sell it at $11? Express formula for calculation and explain why.

Expert Solution
Step 1

Let the purchase price be $p.

Then, profit/earning when the product is sold for $10 = $(10 - p) 

According to the problem, 

      10 - p = p × m%

     => 10 - p = pm/100

     => p + pm/100 = 10

     => p(1 + m/100) = 10

     => p(100 + m)/100 = 10

     => p = 1000/(100 + m) 

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I'm confused. According my professor, answer is expression: (10 + 1,1m)%

Could you explain in other way? Please :D

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