Money is what we use to buy things we need or want. It can come in different forms like coins, paper bills, or even digital numbers in a bank account. Think of it as a tool that helps us trade and get things without having to barter, which means trading goods directly.
Coins:
Notes:
Digital Money:
Different countries use different currencies. Indian currency is known as rupees.
In India, the currency consists of two units: rupees and paise.
Rupees (₹):
Paise (p):
When money exceeds ₹1, it is expressed in rupees. For instance, ₹2.75 means 2 rupees and 75 paise.
Example:
₹ 1 = 100 paise, Then
₹ 2 = 2 × 100 paise = 200 paise
₹ 3 = 3 × 100 paise = 300 paise,
₹ 4 = 4 × 100 paise = 400 paise
Below are some of the rules for the conversion of rupees into paise and vice versa.
To change an amount in ‘rupees’ and ‘paise’ into paise we multiply the number of rupees by 100 and add it to the number of paise.
Example 1: Convert 35 rupees 25 paise into paise.
Sol: 35 rupees 25 paise = (35 × 100) paise + 25 paise
= 3500 paise + 25 paise
= 3525 paise
To convert an amount given in rupees into paise, we remove the symbol of ₹ and the point and write paise.
Example 2: Convert the following amounts into paise.
(a) ₹ 41.25
(b) ₹ 106.50
(c) ₹ 0.25
Sol: (a) ₹ 41.25 = 4125 paise
(b) ₹ 106.50 = 10650 paise
(c) ₹ 0.25 = 25 paise
To convert an amount given in paise into rupees, we put a point after two digits from the right of the given number showing paise. The number on the left of the point gives the number of rupees and that on the right gives paise.
Conversion of rupees into paise and vice versa
Example 3: Convert the following into rupees.
(a) 4535 p
(b) 9p
(c) 505 p
Sol: (a) 4535 p = ₹ 45.35
(b) 9p = ₹ 0.09
(c) 505 p = ₹ 5.05
Some practical situations involve addition of money. To find the total amount we write one amount under the other such that the point is exactly under the point and add as ordinary numbers.
Example 4: Add ₹ 217.31 and ₹ 335.46.
Thus, ₹ 217.31 + ₹335.46 = ₹552.77
Some practical situations involve the subtraction of money. To find the difference we write one amount under the other such that the point is exactly under the point and subtract as ordinary numbers.
Example 5: Subtract ₹127.56 from ₹579.86.
Thus, ₹579.86 – ₹127.56 = ₹452.30.
Some practical situations involve the multiplication of a sum of money expressed by a number using a point. To find the product we multiply in the usual way and put the point two places from the right.
Example 6: Find ₹312.97 × 3.
Sol: We have
31297 × 3 = 93891
₹312.97 × 3 = ₹938.91
Thus ₹312.97 × 3 = ₹938.91.
Divide the amount given by the given whole number, taking the amount as an ordinary number. Put a decimal point after 2 digits from the right in the quotient.
Example 7: Divide ₹22750 by 14.
Thus, the quotient is ₹1625.
Example 8: Divide ₹115.15 by 7
First divide 11515 by 7
₹11515 ÷ 7 = 1645
Hence, ₹115.15 ÷ 7 = ₹16.45
At times, we do not need to know the exact amount of money, but we need to get an idea of the cost. To find it, we round off the amount to the nearest rupee. This is called the estimation of money.
Example 13: Round off the following to the nearest rupee:
(a) ₹523.96
(b) ₹684.35
Sol: (a) ₹523.96 = ₹524 (Rounding 96 p to the nearest hundred, we get 100 p or ₹1.)
₹523 + ₹1 = ₹524(b) ₹684.35 = ₹684 (Rounding 35 p to the nearest hundred, we get 0 p. This can be taken as ₹ 0.)
₹684 + ₹0 = ₹684
Sometimes, it's helpful to round off amounts to the nearest rupee to make calculations easier. Here's how you do it:
Steps to Round Off Amounts
Identify the Amount:
Check the Paise (Decimal Part):
Amount: ₹112.86
Amount: ₹39.63
After rounding off, you can add the amounts easily.
Example:
28 videos110 docs30 tests

1. What is the basic concept of money conversion in the context of the article? 
2. How is addition and subtraction of money relevant in the study of money as discussed in the article? 
3. How does multiplication by a number play a role in money calculations according to the article? 
4. Why is division of money by a number significant in the context of handling money as explained in the article? 
5. How does estimating money help in practical applications of money management as discussed in the article? 

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