Add, subtract, multiply and divide money amounts

key notes :

Understanding Money Amounts

• Money is expressed in dollars ($) and cents (¢).
• 1 dollar = 100 cents.
• Decimal notation is used (e.g., $2.50 means 2 dollars and 50 cents).

Adding Money Amounts

• Align the decimal points before adding.
• Add like a regular number.
• Carry over if necessary.
• Example: \begin{array}{c} 5.75 \\
• 3.25 \ \hline 9.00 \end{array} ]

Subtracting Money Amounts

• Align the decimal points before subtracting.
• Borrow if needed, especially when subtracting cents.
• Example: \begin{array}{c} 10.50 \\
• 4.75 \ \hline 5.75 \end{array} ]

Multiplying Money Amounts

• Ignore the decimal point and multiply as whole numbers.
• Count total decimal places and place the decimal in the product accordingly.
• Example:

4.50 × 3 = 13.50

Dividing Money Amounts

• Place the decimal point in the quotient directly above where it appears in the dividend.
• If needed, convert cents into whole numbers by multiplying both the dividend and divisor by 100.
• Example:

9.60 ÷ 4 = 2.40

Learn with an example

let’s practice!