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What exactly is a decimal? The word decimal literally means of tenths.
We use decimals to represent numbers that use a place value system based on tenths. The decimal point tells you just how many tenths or multiples of tenths are in a given number.
Perhaps the best way to understand what a decimal number represents is to view it in fraction form.
For example: 1/10 = .1
1/100 = .01

Still don't understand? Well, think of how we count money. It takes 100 pennies to make a dollar, right? So If we want to write 50 pennies using the decimals, it would be 50/100 or .50.