.002 dollars does not equal .002 cents

Wow. I was both shocked and horrified as I listened this recording of a phone call to Verizon.

In the call the customer is trying to resolve an issue where he was quoted a price of .002 cents per kilobyte but charged .002 dollars per kilobyte.

He speaks to a rep, a supervisor, and a floor manager. All three of them are convinced that .002 dollars and .002 cents are the same amount.

The call is a bit long at 27 minutes, but you don’t have to listen to the whole thing to get the point. Personally, I couldn’t stop listening. I can understand the initial mistake, but he attempted to explain the difference over and over again with no luck. He probably could have done a better job of explaining it, but come on, this is basic math.

Is our math education that bad? No wonder people have so many financial problems. Anyway, I recommend you check it out, especially if you’re not sure what the difference is.

Update: A shortened version of the call that still hits the best parts is available here.

9 thoughts on “.002 dollars does not equal .002 cents

  1. LOL. reminds me of a guy that told me .8 (with cent sign behind it) means .008 – I thought he meant 80 cent not 8 thousandths of a cent.

    Sorry, but I still don’t know the difference. – I think it’s a matter of PUNCTUATION.. – In other words where and when should we use a $ or a cent sign. – Noted your keyboard doesn’t have a cent sign (which is why I have to spell out “cent sign” instead of just hitting a symbol)

    But our keyboards does however have a Dollar sign and period (which can be used as a decimal)

    Reason being is because anything after a decimal is considered CENT (or change).

    $0.002 is 2 thousandths of a Dollar. “2 thousandths of a dollars” written in numbers is 0.002 (cent sign)

    “THOUSANDTHS” means it will take 1000 of those to get a dollars.

    Bottom line if you calculate $35,896 x $.002 or $35,896 x .002 (cent sign) You will come out with 71.792 – Put the dollar or cent sign where you want, but common knowledge tells us that numbers in front of the decimal represent Dollars and numbers after the decimal represent cents. – Somebody owes $71.79 (cent sign)

  2. T-Nel, I have to disagree. Numbers in front of the decimal represents the whole unit of whatever unit that is indicated. You wouldn’t make the same mistake with 2.54 hours, 2.54 minutes, and 2.54 seconds. You can’t assume anything from a decimal point, you have to know which unit is being measured. .02 means 2 hundredths of some unit. A dollar sign or a cent sign indicates the unit. $.02 means 2 hundredths of a dollar as indicated by the dollar sign. .02¢ means 2 hundredths of a cent. I think you can understand this by simply figuring out how to write “half a cent”: .5¢ This cannot be both 50 cents and half a cent. It is .5 of the indicated unit, in this case, cents.

    So, when you state that “2 thousandths of a dollars written in numbers is 0.002¢,” that is just not true. .002¢ means 2 thousandths of a cent.

    In your math example, your math is correct, but the units are not. 4 x 2.5 seconds and 4 x 2.5 minutes both equal 10, but one is 10 seconds and the other is 10 minutes. The same is true in your example. One is 71.79 dollars, and the other is 71.79 cents.

    50¢ = “fifty cents”
    .50¢ = “half a cent”
    $50 = “fifty dollars”
    $.50 = “5 tenths of a dollar” which is equal to “half a dollar”, “50¢” or “50 cents”
    $.05 = “5 hundredths of a dollar” which is equal to “One 20th of a dollar”, “5¢” or “5 cents”

    Clearly the issue confuses a lot of people. If you’re still not sure, let me know.

  3. T-Nel is indeed mistaken. Type .002 cents * 35896 into google and see what you get for an answer (71 cents, or .71 dollars). Then type .002 dollars * 35896 and see what you get (71 dollars). .002 is just the units or value. What you apply it against as the measure per unit (dollars vs cents) makes all the difference.

  4. Sadly I saw this same error at my daughters school. The teacher actually argued with me that:

    “Whenever you are talking about money you have to use the decimal point in front of the non dollar amount, even when using the ‘cent sign.'”

    This is what they teach.

  5. Yes, I’ve become a little discouraged by the amount of people that continue to argue this point even after it has been explained to them. I have some sympathy for the initial mistake, but failing to understand the difference, or refusing to accept it after an explanation, says something bad about the state of our mathematics education.

  6. Yup…. T. Nel is wrong….
    its like .002 of 1000 2 and .002 of 10000=20 …so unit is important !

  7. I work for Papa Johns, and we recently came out with promos for our new chicken wing deal that advertises them being .50(cent sign) per wing, which is technically half a cent per wing, though we charge them .50$ per wing. I wont be surprised if we start getting complaints

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