Using a calculator
When doing problems that involve money, you should always ensure that
your answer has 2 decimal places.
2 decimal places means that after the decimal point, there should be 2
numbers.
For example: £5.20 has 2 decimal places.
When using a calculator for money you have to add in a number yourself
sometimes. This only happens when the answer to a question should
have a zero as the 2nd decimal place, as in the example above.
A calculator does not add in this zero, so you have to ensure that you do!
5.2
The calculator displays £5.20 as 5.2.
You have to recognise that this is
£5.20 by adding the missing zero.
Adding and subtracting money
When doing addition and subtraction problems, it is very important that
you follow a few basic rules to ensure that you get the answer right every
time.
We are going to work out £4.25 + £2.97
1st step
When writing out the sum, make sure
that the numbers are in the correct columns
2nd step Always start in the end column then move along
to the left
The answer is £7.22
£4.25
£2.97
£7 .2 2
Adding and subtracting money
The same steps are involved when subtracting amounts of money.
We are going to work out £7.35 – £2.65
1st step
When writing out the sum, make sure
that the numbers are in the correct columns
6 1
2nd step Always start in the end column then move along
to the left
The answer is £4.70
Now try questions 1 and 2 in your booklet.
7.35
-2.65
4.70
Discount and surcharge
A discount means that you pay less for something. To work out a
discount you subtract from the original price.
1. A shop is having a sale. A pair of jeans cost £65 before the sale and
has been discounted by £25. How much are the jeans now?
£65
- £25
£40
The jeans now cost £40
A surcharge means that you pay extra for something.
2. A day ticket for T in the Park costs £55. There is a surcharge of £4.50
for a booking fee. How much will the ticket cost in total?
£55.00
+ £ 4.50
£59.50
The ticket will cost £59.50
Now try question 3 in your booklet.
VAT
The government adds a tax onto most of the things that you pay for called
value added tax (VAT). This money helps to pay for running the country.
1. When shopping at Currys, John bought a television for £350. VAT of
£61.25 was added to the bill. How much is the total bill?
£350.00
+ £ 61.25
£411.25
Total bill = £411.25
2. A builder quotes £3100 for building work. VAT of £542.50 is added to
the bill. How much is the total quote?
£3100.00
+ £ 542.50
£3642.50
Total quote = £3642.50
Now try question 4 in your booklet.
Problem solving
For the following money problems, you have to decide whether to add,
subtract, multiply or divide.
1. Jodie bought four CDs for £9.50 from her local supermarket. How
much did she spend on the CDs?
For this problem you multiply
£9.50 × 4 = £38.00
2. Julie spent £48.45 on three jumpers. How much did each jumper cost?
For this problem you divide
£48.45 ÷ 3 = £16.15
Problem solving
3. Finn went to the gym for a workout. It costs £6.50 for the day and he
paid with a £20 note. How much change did Finn receive?
For this problem you subtract.
£ 20.00
- £ 6.50
13.50
4. Jack is given £10 pocket money for the week. He spends £1.50 on
swimming and £5.50 at the cinema. How much money does he have
left?
This problem involves both addition and subtraction.
£ 5.50
+ £ 1.50
7.00
£ 10.00
- £ 7.00
3.00
He has £3 left.
Now try question 5 in your booklet.
Test yourself
You are now ready to tackle the end-of-topic test in your booklet.
GOOD LUCK!!