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Following this table, we can see that if we write a string of digits together, each of the digits is multiplied by a power of ten where the placement of the digit in question determines the exponent. The right-most digit multiplied by the 0th power of ten, the next digit to the left is multiplied by the 1st power of ten, the next is multiplied by the 2nd power of ten and so on until you run out of digits. Also, we can see why we're taught phrases like ``the thousand's place'' - the digit 7 in the number above is multiplied by 1000 (
because of its location in the written number - it's in the ``thousand's place'')
This is a very efficient method of writing down a number because each time you add an extra digit, you increase the number of possible numbers you can represent by a factor of ten. For example, if I have three digits, I can represent a total of one thousand different numbers (000 - 999). If I add one more digit and make it a four-digit number, I can represent ten thousand different numbers (0000 - 9999) - an increase by a factor of ten.
This particular property of the system makes some specific mathematical functions very easy. If you want to multiply a number by ten, you just stick a ``0'' on the right end of it. For example, 346 multiplied by ten is 3460. By adding a zero, you shift all the digits to the left and the multiplication is automatic. In fact, what you're doing here is using the way you write the number to do the multiplication for you - by shifting digits, you wind up multiplying the digits by new powers of ten in your head when you read the number aloud.
Similarly, if you don't mind a little inaccuracy, you can divide by ten by removing the right-most digit. This is a little less effective because it's not perfect - you are throwing some details away - but it's pretty close. For example, 346 divided by ten is pretty close to 34.
We typically call this system the decimal numbering system (beacuse the root ``dec'' means ``ten'' - therefore words like ``decimate'' - to reduce in number by a power of ten, and ``decathalon'' for a sporting contest with 10 different events). There are those among us, however, who like our lives to be a little more ordered - they use a different name for this system. They call it base 10 - indicating that there are a total of ten different digits at our disposal and that the location of the digits in a number correspond to some power of 10.