In a price problem, the last step is to divide the net to be received by the decimal found in step 2. If the net to be received is $96,000 and the decimal from step 2 is 0.80, what is the final price?

In a price problem, the last step is to divide the net to be received by the decimal found in step 2. If the net to be received is $96,000 and the decimal from step 2 is 0.80, what is the final price?

• A. $120,000
• B. $96,000
• C. $72,000
• D. $128,000

Answer: (A)

The main idea is that the net amount you receive is a percentage of the final price. Here, the net is 96,000 and the decimal is 0.80, meaning net = final price × 0.80. To find the final price, divide the net by the decimal: 96,000 ÷ 0.80 = 120,000. So the final price is $120,000. The net must be smaller than the final price because 20% is taken as costs. If you test the other amounts with 80%: a final price of 96,000 would yield a net of 76,800; 72,000 would yield 57,600; and 128,000 would yield 102,400—none match the given net of 96,000.

The main idea is that the net amount you receive is a percentage of the final price. Here, the net is 96,000 and the decimal is 0.80, meaning net = final price × 0.80. To find the final price, divide the net by the decimal: 96,000 ÷ 0.80 = 120,000. So the final price is $120,000. The net must be smaller than the final price because 20% is taken as costs. If you test the other amounts with 80%: a final price of 96,000 would yield a net of 76,800; 72,000 would yield 57,600; and 128,000 would yield 102,400—none match the given net of 96,000.