To find the net dollars from a gross amount, what operation is performed?

To find the net dollars from a gross amount, what operation is performed?

• A. Divide by 0.85
• B. Add 15%
• C. Multiply by 0.85
• D. Subtract 15%

Answer: (C)

To determine the net dollars from a gross amount, it's essential to understand the relationship between gross and net amounts, particularly in terms of percentages. When you are given a gross amount that includes a certain percentage (such as commissions, fees, or taxes), calculating the net amount typically involves removing that percentage from the gross total. In the context of finding the net from the gross, if you want to find what remains after accounting for a 15% deduction from the gross amount, you essentially need to retain 85% of it since 100% - 15% = 85%. Therefore, to compute the net amount, you would multiply the gross amount by 0.85. This operation effectively reduces the gross figure by the 15% that needs to be subtracted to arrive at the net amount. This multiplication reflects the portion of the total that remains after the deduction, allowing you to arrive at the accurate net dollars from the original gross amount.

To determine the net dollars from a gross amount, it's essential to understand the relationship between gross and net amounts, particularly in terms of percentages. When you are given a gross amount that includes a certain percentage (such as commissions, fees, or taxes), calculating the net amount typically involves removing that percentage from the gross total.

In the context of finding the net from the gross, if you want to find what remains after accounting for a 15% deduction from the gross amount, you essentially need to retain 85% of it since 100% - 15% = 85%. Therefore, to compute the net amount, you would multiply the gross amount by 0.85. This operation effectively reduces the gross figure by the 15% that needs to be subtracted to arrive at the net amount.

This multiplication reflects the portion of the total that remains after the deduction, allowing you to arrive at the accurate net dollars from the original gross amount.