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 $84,000 and the decimal from step 2 is 0.70, 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 $84,000 and the decimal from step 2 is 0.70, what is the final price?

• A. $120,000
• B. $84,000
• C. $102,000
• D. $140,000

Answer: (A)

When the net amount you’ll receive is a certain decimal of the final price, the relationship is net = final price × decimal. So to find the final price, divide the net by the decimal. Here, the net to be received is 84,000 and the decimal is 0.70. Final price = 84,000 ÷ 0.70 = 120,000. This checks because 120,000 × 0.70 = 84,000. Other final prices wouldn’t produce the given net: for example, 84,000 × 0.70 = 58,800; 102,000 × 0.70 = 71,400; 140,000 × 0.70 = 98,000. Only 120,000 yields the 84,000 net.

When the net amount you’ll receive is a certain decimal of the final price, the relationship is net = final price × decimal. So to find the final price, divide the net by the decimal.

Here, the net to be received is 84,000 and the decimal is 0.70. Final price = 84,000 ÷ 0.70 = 120,000. This checks because 120,000 × 0.70 = 84,000.

Other final prices wouldn’t produce the given net: for example, 84,000 × 0.70 = 58,800; 102,000 × 0.70 = 71,400; 140,000 × 0.70 = 98,000. Only 120,000 yields the 84,000 net.