Here’s and example of a **SMART MATH** problem for **PERCENTAGES.**

**Problem**

**Problem**

The cost for transportation amounts to 5% of the cost price. What is the cost price of goods sold for $1890 at 20% profit on the total outlay?

- $1417.50
- $1500
- $1575
- $1600
- $1675

**The Usual Method**

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Let the cost price of the goods be $‘*x*’

Hence, price of goods after transportation = 1.05x

Adding 20% to it, we get:

This is equal to $1890

= $1500

**(Ans: 2)**

*Estimated Time to arrive at the answer = 45 seconds.*

**Using Technique**

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Adding 20% on 100 is equivalent to removing 16.67% from 120. (as explained in the Percentages section of Stuff to Remember)

16.67% = of the number

of 1890 = 315.

Reducing 16.67% from 1890, we get 1890 – 315 = 1575

However, this is inclusive of transport cost of 5%

Hence, the actual answer is less by approximately 5%. The only option less than $1575 is $1500. Hence, option ‘2’. Note that $1417.50 is not the correct value since it is more than 5% less than 1575.

**(Ans: 2)**

*Estimated Time to arrive at the answer = 15 seconds.*

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