RatedrillPrice for a target margin
A time value of money problem from Ratedrill. Solve it with one answer box, with fresh numbers on every attempt and the formula, calculator keystrokes and Excel version in the worked answer, and it is checked the moment you submit.
The task
An item costs $10.75 to buy. What selling price gives a gross margin of 20% of the selling price?
What this problem teaches
The formula: Price = cost / (1 - margin).
A hint if you get stuck
A margin is a share of the price, so price = cost / (1 - margin).
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