Essay

Simplifying Business Formulas Using the Distributive Property

A billing analyst at an electric utility company is training a junior analyst to simplify budget projection formulas. The company uses the expression 100(0.7+0.15p){}100(0.7 + 0.15p) to model cost adjustments, where pp is the rate factor. To make the formula easier to read and enter into spreadsheets, the junior analyst needs to apply the Distributive Property.

In your own words, describe the step-by-step process the junior analyst must use to simplify the expression 100(0.7+0.15p){}100(0.7 + 0.15p). In your explanation:

  1. State the algebraic property used to simplify the expression.
  2. Explain how multiplying by the factor of 100{}100 affects the decimal points of the terms inside the parentheses.
  3. Provide the final, simplified expression.

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Updated 2026-06-03

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