Add and subtract money: word problems

Key Notes :

Understanding Money:

• Money is represented by different denominations (coins and bills).
• In word problems, money can be written in dollars, cents, or a combination of both.
• Converting between dollars and cents is important (1 dollar = 100 cents).

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Addition of Money:

• When adding money, align the decimal points of the dollars and cents.
• Add the cents first, then the dollars.
• If the sum of the cents is more than 100, carry over to the dollars.

Example:

• $3.75 + $4.50 = $8.25

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Subtraction of Money:

• Subtract money in the same way: align decimal points for dollars and cents.
• Start with the cents and subtract, then the dollars.
• If the cents in the smaller number are greater than the cents in the larger number, borrow from the dollars.

Example:

• $10.00 – $3.85 = $6.15

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Solving Word Problems:

• Step 1: Read the problem carefully to understand what is being asked.
• Step 2: Identify the amounts involved (look for dollar and cent values).
• Step 3: Determine whether you need to add or subtract.
• Step 4: Solve the problem by applying addition or subtraction, remembering to align the decimal points.

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Examples of Word Problems:

• Addition Example:
  “You have $5.50. Your friend gives you $7.75. How much money do you have now?”
  Solution: $5.50 + $7.75 = $13.25
• Subtraction Example:
  “You buy a toy for $8.30. You pay with a $10 bill. How much change do you get?”
  Solution: $10.00 – $8.30 = $1.70

Learn with an example

Let’s practice!🖊️