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 $50,000 and the decimal from step 2 is 0.50, 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 $50,000 and the decimal from step 2 is 0.50, what is the final price?

• A. $100,000
• B. $50,000
• C. $75,000
• D. $125,000

Answer: (A)

The fundamental idea is that the net amount is a percentage of the final price. A decimal of 0.50 means the net received is 50% of the final price. To recover the full price, you divide the net by that decimal. So 50,000 divided by 0.50 equals 100,000, which is the final price (since dividing by 0.50 is the same as multiplying by 2). Other numbers would come from different percentages: dividing by 1 would give 50,000; by 0.75 would give about 66,667; by 1.25 would give 40,000. But with a decimal of 0.50, the correct final price is 100,000.

The fundamental idea is that the net amount is a percentage of the final price. A decimal of 0.50 means the net received is 50% of the final price. To recover the full price, you divide the net by that decimal. So 50,000 divided by 0.50 equals 100,000, which is the final price (since dividing by 0.50 is the same as multiplying by 2).

Other numbers would come from different percentages: dividing by 1 would give 50,000; by 0.75 would give about 66,667; by 1.25 would give 40,000. But with a decimal of 0.50, the correct final price is 100,000.