Conversion of Money (Units & Examples) - BYJUS

Conversion of Money Units

Money is a commodity that we use to buy and sell goods and services. Currency is the money that’s in circulation in a specific country. The national currency of the US is the dollar. There are different denominations of the US dollar in circulation: 1¢ (1 cent or $0.01), 5¢, 10¢, 25¢, 50¢,$1, $2,$5, $10,$20, $50, and$100. For conducting transactions using money, it is important to learn how to convert one denomination into another....Read MoreRead Less

Understanding What Money Is

One of the most useful early math skills is the conversion of money units. For this, it is important to learn how to count and recognize common coins and bills. Before we move on to that, let us first understand what money is.

Money is any form of exchange that can be used to purchase goods and services as well as to determine the worth of items. Currency refers to the money in circulation in a country, such as coins and bills. The ability to identify money, and the ability to exchange money and make change are the two most important skills that children need to know when it comes to money, and the earlier they learn them, the better.

They are unlikely to learn these skills in school because most schools focus on math rather than money.

Identifying Money

Money comes in a variety of shapes and sizes, that includes metal and paper. Different money units have distinct values that can be used to pay for various items. It is the denomination of the money that matters, not its size. The most important concept children must understand about money is that it is based on the dollar. Coins are fractions of that unit, and bills are multiples of it. These basic facts need to be clear in children’s minds before they move on to understand the conversion of money units.

The Value of Each Coin Is

A penny is equal to 1 cent.

• A nickel is equal to 5 cents.
• A dime is equal to 10 cents.
• A quarter is equal to 25 cents.

Make One Dollar

Let’s get the basics clear!

$is the dollar sign ¢ is the cent sign One dollar has the same value or is made up of hundred cents.$1 = 100¢

You can notice that the dollar symbol is put before the number while the cent symbol is put after the number.

Instead of having a $1 coin we have a$1 bill. Here is a picture of a 1 dollar bill from both sides:

We have different coins such as: penny, nickel, dime and a quarter.

Each coin has its own value. We can express a $1 bill with combinations of these coins. We combine it with either the same coin or with different coins to make a one dollar bill. 4 quarter =$ 1

10 dimes    = $1 20 nickels =$ 1

100 pennies = $1 Similarly, 2 quarter + 5 dimes =$1

10 nickels + 50 pennies = $1 Example: Suppose you have 40 cents, how many cents would you need to make one dollar? You can understand this through the following conversion. Since,$1 = 100¢, therefore, we subtract 40 cents from 100 cents

That is 100 cents – 40 cents = 60 cents

Since you already have 40¢, you would need 60¢ more to make it a dollar.

This is how we can express 60 cents with different coins.

5¢ + 5¢ + 25¢ + 25¢ = 60¢

Revise Math formulas and important concepts using our Math worksheets! These worksheets help students to develop Math skills in a fun and interesting way. Click the link below to get all the easy-to-comprehend math calculators and worksheets.

Make Change from One Dollar

Solved Examples

Example 1:Show how many cents you need to make $1: a. 30¢ Solution: Therefore, 10¢ + 10¢ + 25¢ + 25¢ = 70¢ Thus you need 70¢ more to make it$1.

b. 75¢

Solution:

Therefore, you need 25¢ more to make it $1 c. Solution: The given coin has a value of 25 cents. Therefore, 25¢ + 25¢ + 25¢ = 75¢ Thus you need 75¢ more to make it$1

Example 2:

Consider that a bottle of water costs $1. If you have two quarters and five pennies, how much more money do you need to buy the bottle of water? Solution: Since, 1 quarter = 25 cents Therefore 2 quarters $$=2\times 25$$ = 50 cents Similarly, 1 penny = 1 cent Then, 5 pennies = 5 x 1 = 5 cents Therefore you have a total of, 50 cents + 5 cents = 55 cents Since,$1 = 100¢

Therefore, we subtract 55 cents from 100 cents

That is 100 cents – 55 cents = 45 cents

Since you already have 55¢, you would need 45¢ more to buy the bottle of water.

Example 3:

You buy a candy for 30 cents and you give a $1 bill to the shopkeeper. What is the amount of change you receive? Solution: One way is to count back. Begin at 100 and count back till 30. Thus, the change you receive is 70¢. Another way is subtraction: 100¢ – 30¢ = 70¢ Example 4: Suppose you bought a notebook and a pencil for 23¢ and 6¢ respectively, and you give a$1 bill to the shopkeeper.

What is the remaining change that you’ll get back?

Solution:

Total money spent on the notebook and pencil = 23¢ + 6¢ = 29¢

One way is to count back. Begin at 100 and count back till 29.

Thus, the remaining change is 71¢.