Money is decimal arithmetic — dollars and cents (or pounds and pence). Cents are hundredths of a dollar.
You try
A coffee is $3.45 and a muffin is $2.80. What's the total?
Money decimal rules
- 1 dollar = 100 cents, so cents are hundredths — always two decimal places.
- Line up the decimal points before adding or subtracting.
- $4 means $4.00 — pad with zeros so columns match.
- Round money to the nearest cent (2 dp) unless told otherwise.
Try it
$10.00 − $3.65
10.00 − 3.65 = $6.35.
Your turn
Three friends split a $27.60 bill evenly. How much each?
Try it
$3.50 + $1.75
$5.25.