Calculating Money

🌟 What are Pounds and Pence?

In the UK, money is measured in pounds (£) and pence (p).

$$ £1 = 100p $$

If a sandwich costs £3.68, you can break it down like this:

$$ £3.68 = £3 + 68p $$

This means the sandwich costs: “3 pounds and 68 pence“.

Method: When adding amounts of money, add the pounds and pence separately.

Example: Add £3.68 and £1.49.

• Step 1: Break them into pounds and pence:

$$ (£3+68p)+(£1+49p) $$

• Step 2: Add the pounds and pence:

$$ £3+£1=£4$$

$$ 68p+49p=117p$$

• Step 3: Since 117p is more than 100p, change 100p into £1:

$$ 117p=100p+17p=£1+17p$$

• Step 4: Now add everything together:

$$£4+£1+17p=£5+17p=£5.17$$

Method: When subtracting prices, subtract the pounds and pence separately.

Example: Subtract £5.17 from £10.

• Step 1: Break £10 into £9 and £1, so that you can convert £1 into 100p:

$$ £10=£9+£1=£9+100p $$

• Step 2: Set up the subtraction:

$$(£9+100p)−(£5+17p)$$

• Step 3: Subtract pounds and pence separately:

$$ £9−£5=£4$$

$$ 100p−17p=83p$$

• Step 4: Final answer:

$$ £4+83p=£4.83 $$

Method: When multiplying prices, it’s easier to multiply the pounds and pence separately first, then add them together.

Example: Multiply £1.20 by 8.

• Step 1: Break down the price:

$$£1.20=£1+20p$$

• Step 2: Multiply pounds and pence separately:

$$ 8 \times £1 = £8 $$

$$8 \times 20p = 160p$$

• Step 3: Simplify the pence:

$$ 160p=£1+60p$$

• Step 4: Final answer:

$$ £8+£1+60p=£9.60$$

Method: When dividing prices, you first convert the total amount into pence so you are working with whole numbers. After dividing, change your answer back into pounds and pence.

Example: Divide £9.60 by 3.

• Step 1: Convert the amount into pence:

$$£9.60=960p$$

• Step 2: Divide the pence:

$$960p÷3=320p$$

• Step 3: Break pence back into pounds and pence:

$$320p=£3+20p=£3.20$$