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 $110,000 and the decimal from step 2 is 0.88, 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 $110,000 and the decimal from step 2 is 0.88, what is the final price?

• A. $125,000
• B. $110,000
• C. $100,000
• D. $144,000

Answer: (A)

In pricing problems like this, the net amount you receive is the final price multiplied by a given decimal (the percentage expressed as a decimal). So net = final price × decimal. To find the final price, divide the net by the decimal: final price = net ÷ decimal. Here, net to be received is 110,000 and the decimal is 0.88. Compute 110,000 ÷ 0.88 = 125,000. You can verify: 125,000 × 0.88 = 110,000, which means 88% of the final price equals the net amount received. Using other final prices doesn’t fit: for example, 110,000 would yield 96,800 at 0.88; 100,000 would yield 88,000; 144,000 would yield 126,720. Only 125,000 gives the correct net of 110,000.

In pricing problems like this, the net amount you receive is the final price multiplied by a given decimal (the percentage expressed as a decimal). So net = final price × decimal. To find the final price, divide the net by the decimal: final price = net ÷ decimal.

Here, net to be received is 110,000 and the decimal is 0.88. Compute 110,000 ÷ 0.88 = 125,000. You can verify: 125,000 × 0.88 = 110,000, which means 88% of the final price equals the net amount received.

Using other final prices doesn’t fit: for example, 110,000 would yield 96,800 at 0.88; 100,000 would yield 88,000; 144,000 would yield 126,720. Only 125,000 gives the correct net of 110,000.