If a diamond weighs 1.01 carats and costs $4,900 per carat, what is the total cost of the diamond?

To determine the total cost of the diamond, you multiply the carat weight by the cost per carat. In this case, the diamond weighs 1.01 carats and the cost is $4,900 per carat.

The calculation is as follows:

1.01 carats x $4,900 per carat = $4,949.

This shows that the total cost of the diamond is $4,949, making it the correct answer.

Understanding this concept is crucial because pricing in the diamond industry is typically based on carat weight and quality, influencing overall valuation significantly. The other potential answers do not reflect this accurate multiplication of carat weight by cost per carat and therefore are not the correct total cost.