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ASVAB · Interest, Discount, and Markup

A store marks up an item that costs $40 by 30%. What is the selling price?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

$52

  1. A $48
  2. B $70
  3. C $12
  4. D $52

Why this is the answer

A markup is added to the cost. First find the markup: 30% of $40 = 0.30 × 40 = $12. Then add it to the cost: $40 + $12 = $52. Equivalently, a 30% markup means selling at 130% of cost: 1.30 × $40 = $52. Markup problems are the mirror image of discount problems — you add the percentage instead of subtracting it. The $12 distractor is just the markup amount, not the selling price. The item sells for $52.
Source: ASVAB AR, Markup Pricing

Practice more questions

This question is from our ASVAB Practice Tests practice test. Take the full practice test to test your knowledge across all Interest, Discount, and Markup and other topics.

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About this topic: Interest, Discount, and Markup

Interest, discount and markup questions use the same percentage machinery: simple interest (principal × rate × time), sale prices after a discount, and selling price after a markup. Watch for two-step problems where the percentage applies to a changed amount. This is one of 9 Arithmetic Reasoning questions on interest, discount, and markup, each with a full explanation on a single study page.

New to this exam? Our ASVAB exam guide explains the format, scoring, and how to prepare.

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