Skill: Solve money problems with decimals

Money amounts are written as decimals to the hundredths place because $1$ cent is 0.01$.

Example:
Mia has 5.00$. She buys a notebook for$$1.75$and 3 pencils that cost$$0.40$ each. How much change does she receive?

1. Find the cost of the pencils.
   Since all 3 pencils cost the same, multiply the price by 3:

$$\$0.40+\$0.40+\$0.40=\$1.20$$

2. Add the costs.
   Line up the decimal points so the dollars and cents are in the correct places:

$$\begin{array}{r} \$1.75\\ +\$1.20\\ \hline \$2.95 \end{array}$$

Mia spends 2.95$.

3. Subtract the cost from the amount Mia has.

$$\begin{array}{r} \$5.00\\ -\$2.95\\ \hline \$2.05 \end{array}$$

Mia receives 2.05$ in change.

4. Check your answer.
   The cost is about 3$, and$$5-$3$is about$$2$. So$$2.05$ is reasonable.