A retailer buys a lamp for $40 and marks it up 45 percent to set the selling price. What is the selling price?

Correct answer to question 147 (Arithmetic Reasoning): $58.00

Method

A markup adds a percent of the cost on top of the cost. The markup is 0.45 x 40 = $18, so the selling price is 40 + 18 = $58.00.