Introduction
Money is something through which we can buy some goods and through which we can also get some goods for our usage. We generally sell goods to earn money and we earn that money for our own purpose or usage (to buy our own assets). Present world market (selling and buying) is running because of money and it became one of the important asset for human, we generally represent money in form of currency exchange (dollars etc), assets, accounts, sort of value etc.
Currencies conversions:
1 US DOLLAR = 0.73308 EURO1 EURO = 1.36411 US DOLLAR
1 US DOLLAR = 0.63997 POUND
1 POUND = 1.56257 US DOLLAR
1 US DOLLAR = 1.02944 CANADA DOLLAR
1 CANADA DOLLAR = 0.97140 US DOLLAR
1 INDIAN RUPEE = 0.02045 US DOLLAR
1 US DOLLAR = 48.8946 INDIAN RUPEE.etc
Counting Money Using Coins
The American currency was basically divided into penny, nickel, dime, quarter, half dollar and dollar. These are represented as
Penny: 1 penny is worth 1 cent
Nickel: 1 Nickel worth 5 cents
Dime: 1 Dime worth 10 cents
Quarter: 1 Quarter worth 25 cents
Half dollar: 1 Half dollar worth 50 cents
Conversion of coins to different forms
1. Nickel is worth 5 pennies.
2. Dime is worth 10 pennies.
3. Quarter is worth 25 pennies
Steps for conversion
1. First write the coin name and conversion name
2. Write down the relation between coin and other
3. Multiply the number of a type of coin times its value in pennies.
Converting between coins involves finding a coin of coins that have the same value in cents.
1. A dime is worth 10 cents and is equal to 2 nickels or 10 pennies.
2. A nickel is worth 5 cents and is equal to 5 pennies. Two nickels have the same value as 1 dime
3. A penny is worth 1 cent. Five pennies have the same value as 1 nickel. Ten pennies have the same value as 1 dime.
Example How many pennies are three dimes worth?
Given : Dimes to pennies
1 dime is worth of 10 pennies
No of dimes =3
So: 3x10=30
Counting Money Using Dollars
U.S. dollar is the currency most used in international transactions. Several countries use it as official currency, and in many others countries it is the currency. It s denoted with symbol Dollar ($). A penny is worth 1 cent, a dime is worth 10 cents and a dollar is worth 100 cents.
1 Dollar worth 100 cents (100c) or ($1)
Addition of dollars dimes and pennies:
1. Count by hundreds the number of dollars to find the number of cents the dollars are worth
2. Starting at the total, count up by tens for the number of dimes.
3. Count the number of pennies by ones starting at the previous total
Counting Money Using Interest Rates
Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money. The interest is calculated upon the value of the assets in the same manner as upon money. The percentage of the principal that is paid as a fee over a certain period of time is called the interest rate.
There are two types of interest rates such as
simple and
compound interest
Simple interest is the rate of interest which is calculated upon the original principle amount, it is usually used for the short terms and it is calculated using the formula
SI = P x I x N
P – Principle amount
I – Interest rate for one period
N – Number of periods.
Compound Interest
Compound interest is paid on the original principal and on the accumulated past interest, and it is calculated using the formula
A = P (1 + r)n
P is the principal (the initial amount you borrow or deposit)
r is the annual rate of interest (percentage)
n is the number of years the amount is deposited or borrowed for.
A is the amount of money accumulated after n years, including interest.
Solved Problems on Money Counting
1)How many pennies are three dimes worth?
Given: Dimes to pennies
1 dime is worth of 10 pennies
No of dimes =3
So: 3x10=30
2) How many pennies is their in 2nickel?
Given:
Pennies to nickel
No of nickel are 2
Relation: Nickel is worth 5 pennies.
So 2x5=10
3) 2000 has been borrowed and the Simple interest paid to the investment is 300 with 4% per year interest rates. Calculate the time period?
Given data,
P = 2000$
r = 4% = 0.04
I = 300$
Time period (t) t = $\frac{I}{Pr}$
Time (t) = $\frac{300}{(2000 x 0.04)}$
t = 3.75 years
4) Calculate the simple interest for the amount of $1000 and the annual interest rate is 4% for 5 years.
Given that,
P = 1000
I = 4%
N = 5 years.
Simple interest = P x I x N
= 1000 x 4% x 5
= 1000 x $\frac{4}{100}$ x 5
= 10 x 4 x 5
= 10 x 20
= 200
The simple interest is $200.