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 $168,000 and the decimal from step 2 is 0.84, 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 $168,000 and the decimal from step 2 is 0.84, what is the final price?

• A. $200,000
• B. $168,000
• C. $192,000
• D. $240,000

Answer: (A)

If the net amount you receive is 168,000 and this net represents 84% of the final price, you find the final price by dividing the net by 0.84. That’s because net = price × 0.84, so price = net ÷ 0.84. Compute: 168,000 ÷ 0.84 = 200,000. You can also see this as 0.84 = 21/25, so 168,000 ÷ 0.84 = 168,000 × 25/21 = (168,000/21) × 25 = 8,000 × 25 = 200,000. So the final price is $200,000. It makes sense that the final price is higher than the net since only 84% of the price is received.

If the net amount you receive is 168,000 and this net represents 84% of the final price, you find the final price by dividing the net by 0.84. That’s because net = price × 0.84, so price = net ÷ 0.84.

Compute: 168,000 ÷ 0.84 = 200,000. You can also see this as 0.84 = 21/25, so 168,000 ÷ 0.84 = 168,000 × 25/21 = (168,000/21) × 25 = 8,000 × 25 = 200,000.

So the final price is $200,000. It makes sense that the final price is higher than the net since only 84% of the price is received.