Chapter Notes: Money

Table of Contents
1. Introduction
2. What is Money?
3. Understanding Indian Currency
4. Addition and Subtraction of Money
5. Multiplication of Money
6. Division of Money
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Introduction

We use money to buy things like food, clothes, books and toys. We can also save money to buy something big later, for example, a bicycle. Whether it is paying for a bus ride or giving a gift to a friend, money helps us do many things in our daily lives.

What is Money?

• Money is what we use to buy things, pay bills or save for the future.
• Money can be of different types: coins, paper notes (currency) and digital money used online or in bank accounts.
• Money helps us measure the value of things so we can trade, buy and sell easily.
• 1 rupee = 100 paise. Amounts with decimals show rupees and paise. For example, ₹ 1.50 means 1 rupee and 50 paise.

Understanding Indian Currency

• The symbol for the Indian rupee is ₹.
• Common coins: ₹1, ₹2, ₹5 and ₹10.
• Common notes: ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2,000.
• Each coin and note is printed with its value, which tells us how much it is worth.

Addition and Subtraction of Money

To add or subtract money, align the decimal points (the point between rupees and paise) and then add or subtract as with usual decimal numbers. Always make sure that the last two digits to the right of the decimal are the paise.

Example 1: Add ₹ 10.35, ₹ 76.75 and ₹ 45.25.

Example 2: Subtract ₹ 67.85 from ₹ 140.50.

Example 3: Add ₹ 54.75 to ₹ 62.30 and subtract the sum from ₹ 150.00.

Multiplication of Money

• Multiplication of amounts in rupees and paise is done the same way as multiplication of whole numbers.
• One easy method is to ignore the decimal point and multiply the numbers as whole numbers. After finding the product, place the decimal point so that there are two digits to its right (these two digits are paise).
• If you convert rupees to paise (multiply rupees by 100), you can multiply whole paise values and then convert back to rupees by dividing by 100 at the end.

Example 4: Solve ₹ 13.50 × 5.

Method: Multiply 1350 b 5.
Put decimal point (.) from the right leaving two digits 50.
Digits on the right of decimal point indicate paise and digits on the left of decimal point represent rupees.
So, ₹ 13.50 × 5 = ₹ 67.50.

Division of Money

Division of money is done in the same way as we divide numbers. Always remember to put the decimal point after two digits from the right in the quotient.

Example 5: Divide ₹ 439.44 by 6.

So, ₹ 439.44 ÷ 6 = ₹ 73.24.

Making a Bill

When we make a bill, we list each item with its price, add the prices to find the total amount, and finally write the total to be paid. Bills usually show each item's price, the total and any change given.

Example list of purchases:

• Notebook: ₹ 16.50
• Pen: ₹ 7.50
• Story book: ₹ 12.50
• Pack of sketch pens: ₹ 21.00

Grocery list example:

• Rice: ₹ 24.00
• Moong Daal: ₹ 36.50
• Salt: ₹ 9.50
• Shampoo: ₹ 18.50
• Hair Oil: ₹ 28.50

Write all item prices in a column with decimal points aligned.
Add the paise first and carry over 100 paise as 1 rupee when needed. Then add the rupees and write the final total.

Shopping

Example 6: Shekhar bought a notebook for ₹ 8.75, an eraser for ₹ 3.25 and a chocolate for ₹ 12.50. He gave a 50-rupee note to the shopkeeper. How much did he get back?

So, Shekhar will get back ₹ 25.50.

Example 7: The cost of 1 chocolate is ₹ 8.50. Mother bought 5 chocolates and paid with a 50-rupee note. How much will she get back?

Hence, Mother will get back ₹ 7.50.

Example 8: Mrs Shukla bought the following items from a shop.

• 1 packet of tea for ₹ 72.50
• 2 kg of sugar for ₹ 42.40
• 1 packet of coffee for ₹ 105.25

She gave a 500-rupee note to the shopkeeper. How much money did the shopkeeper return?

Hence, the shopkeeper will return ₹ 279.85 to Mrs Shukla.