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Solve money problems with decimals

Money quantities are interpreted as decimals, typically dollars and cents to the hundredths place, and related through addition, subtraction, multiplication, or division in one- and multistep situations such as finding totals, change, costs for several items, or a unit price. Reasoning includes aligning place values, preserving the meaning of cents, estimating to check whether an answer is reasonable, and rounding monetary results when appropriate; advanced financial formulas, percentages beyond the decimal operations involved, and arbitrary-precision currency calculations are not included.

Detailed Explanation: Solve money problems with decimals

Money amounts use decimals: the digits to the left of the decimal are dollars, and the two digits to the right are cents. Always line up decimal points when adding or subtracting.

Example: A student buys 3 notebooks at 2.45eachandapenforeach and a pen for$1.79.Ifthestudentpayswith. If the student pays with $10.00$, how much change will they receive?

First, find the cost of the notebooks:

2.45×37.35\begin{aligned} 2.45\\ \times 3\\ \hline 7.35 \end{aligned}

So, 3 notebooks cost 7.35$.

Now add the cost of the pen. Line up the decimal points:

7.35+1.799.14\begin{aligned} 7.35\\ + 1.79\\ \hline 9.14 \end{aligned}

The total cost is 9.14$.

Finally, subtract the total from the amount paid:

10.00−9.140.86\begin{aligned} 10.00\\ - 9.14\\ \hline 0.86 \end{aligned}

The student receives 0.86$ in change.

Check the answer by estimating: 2.50 \approx $7.50),and, and $7.50+$1.80\approx $9.30.Since. Since $10.00-$9.30\approx $0.70,ananswerof, an answer of $0.86$ is reasonable.

Learn by doing: Solve money problems with decimals

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Ratios - Unit Rates, Find Unit Price - Decimals


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