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 $108,000 and the decimal from step 2 is 0.90, 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 $108,000 and the decimal from step 2 is 0.90, what is the final price?

• A. $100,000
• B. $108,000
• C. $96,000
• D. $120,000

Answer: (D)

The key idea is gross price versus net received. If the net amount you receive is 108,000 and that net represents 90% of the final price, you need to find the whole price that, when reduced to 90%, leaves 108,000. Do that by dividing the net by the decimal: 108,000 ÷ 0.90 = 120,000. So the final price is $120,000. This matches the concept that 90% of the final price equals the net received.

The key idea is gross price versus net received. If the net amount you receive is 108,000 and that net represents 90% of the final price, you need to find the whole price that, when reduced to 90%, leaves 108,000. Do that by dividing the net by the decimal: 108,000 ÷ 0.90 = 120,000. So the final price is $120,000. This matches the concept that 90% of the final price equals the net received.