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Money Basics

Introduction

Money is some thing 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.Money can be represented in different forms in different parts of world.

Coins and Dollars

Coin

A coin is linked to the concept of money. In other word coin and currency are synonyms. Money can be calculated in different forms which can be done by counting coins, counting dollars, counting bills etc. And in special cases such as lending money in these cases the money can be counted using some techniques like rate and interest etc.Money and time both are together used in calculating the interest rates for estimation purposes.

Counting moneyusing 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.

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.

Conversion between Dollar and Coin

Conversion table

Dollars Cents

1 dollar 100 cents

1 Quarter 25 cents

1 Dime 10 cents

1 Nickel 5 cents

1 Penny 1 cent

Solved Problems

1) Convert 45.90 dollars into cents?

Given that

45.90 dollars

We know that 1 dollar = 100 cents

45 dollars = 4500 cents

.90 dollars = 90 cents

45.90 = 4500 + 90 = 4590

45.90 dollars is 4590 cents

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) How many cents are 6 dollars, 5 dimes and 2 pennies worth?

Given: Dollars =6

Dimes= 5

Pennies =2

Count by 100 times for 6 dollars 100,200,300,400,500,600

Count by tens for the 5 dimes: 610, 620, 630, 640,650

Count by ones for the 2 pennies: 651, 652

6 dollars, 5dimes and 3 pennies are worth 652¢

652¢ is the same as $6.52 since there are 100 cents per dollar.