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 $92,000 and the decimal from step 2 is 0.92, 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 $92,000 and the decimal from step 2 is 0.92, what is the final price?

• A. $100,000
• B. $92,000
• C. $84,000
• D. $110,000

Answer: (A)

When a net amount is a percentage of the final price, the decimal 0.92 represents 92% of that price. To recover the full price, divide the net amount by 0.92. So 92,000 ÷ 0.92 = 100,000. Check: 100,000 × 0.92 = 92,000, which matches the net. The final price is 100,000.

When a net amount is a percentage of the final price, the decimal 0.92 represents 92% of that price. To recover the full price, divide the net amount by 0.92. So 92,000 ÷ 0.92 = 100,000. Check: 100,000 × 0.92 = 92,000, which matches the net. The final price is 100,000.