GED Mathematical Reasoning: Money – Adding and Subtracting

Example 1

Add $3.27 and 25¢


Before we add, note that we can refer to the right-most column as the “pennies” column.

3 . 2 7
dollars dimes pennies

The column to the left of that is the “dimes.”And the column to the left of the dimes is the “dollars” column. To perform the addition, let’s first re-write 25¢ as 0.25

Next, stack the values vertically – taking care to neatly line up the digits in corresponding place values as well as the decimal points, placing one directly below the other.

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Bring the decimal point straight down into the answer area, to ensure you don’t forget it in your final answer. Now, we add down – beginning with the column on the right (the “pennies” column). 7 plus 5 is equal to 12. We will write the 2 in the “pennies” column and carry the 1 to the “dimes” column.

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1 plus 2 plus 2 equals 5 and we will write the result of 5 in the “dimes” column.

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The decimal point should appear just to the left of the 5. Finally, 3 plus 0 equals 3 and so we will write a 3 in the “dollars” column.

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The final answer should read: $3.52

Remember: when solving problems related to money, it is important to include the decimal point and dollar sign in your final result.

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