Solved Exercises on Money Word Problems in Grade 3

Master money word problems: addition, subtraction, multiplication, division, and multi-step problems involving dollars and cents through these 5 detailed exercises.

Solution: Exercises 1 to 3
1 Addition word problem
Exercise 1
Sarah has $3.25 saved. Her mom gives her $2.50 more for helping with chores. How much money does Sarah have now?
Definition:

Addition word problem: A problem that requires adding two or more money amounts to find a total. Look for words like "more," "total," "altogether," "sum," or "added to."

Addition method:
  1. Identify the amounts to be added
  2. Write the amounts vertically, aligning dollars and cents
  3. Add the cents column first
  4. Add the dollars column
  5. Include the dollar sign in the answer
Initial amount
$3.25
Additional amount
$2.50
Total
$3.25 + $2.50 = $5.75
Step 1: Identify the amounts

Sarah has $3.25 and gets $2.50 more

Step 2: Set up the addition

$3.25 + $2.50

Step 3: Add the cents

25¢ + 50¢ = 75¢

Step 4: Add the dollars

$3 + $2 = $5

Step 5: Combine dollars and cents

$5 + 75¢ = $5.75

Sarah has $5.75
Final answer:

Sarah has $5.75 altogether

Applied rules:

• Clue words: "more" indicates addition

• Alignment: Align dollars with dollars and cents with cents

• Verification: $3.25 + $2.50 = $5.75 ✓

2 Subtraction word problem
Exercise 2
Tom had $8.00. He bought a comic book for $3.75. How much money does he have left?
Definition:

Subtraction word problem: A problem that requires subtracting one money amount from another to find what remains. Look for words like "left," "remaining," "spent," "used," or "difference."

Initial amount
$8.00
Amount spent
$3.75
Remaining
$8.00 - $3.75 = $4.25
Step 1: Identify the amounts

Tom started with $8.00 and spent $3.75

Step 2: Set up the subtraction

$8.00 - $3.75

Step 3: Regroup if needed

Cannot subtract 75¢ from 00¢, so borrow 1 dollar: $8.00 becomes $7.100

Step 4: Subtract the cents

100¢ - 75¢ = 25¢

Step 5: Subtract the dollars

$7 - $3 = $4

Step 6: Combine the results

$4 + 25¢ = $4.25

Tom has $4.25 left
Final answer:

Tom has $4.25 remaining

Applied rules:

• Clue words: "left" indicates subtraction

• Regrouping: Borrow from dollars when subtracting cents

• Verification: $3.75 + $4.25 = $8.00 ✓

3 Multiplication word problem
Exercise 3
Each ice cream cone costs $2.25. If Emma wants to buy 4 cones for her family, how much money will she need?
Definition:

Multiplication word problem: A problem that requires multiplying a money amount by a number to find a total for multiple items. Look for words like "each," "per," "times," "groups of," or "total for all."

Price per cone
$2.25
Number of cones
4
Total cost
$2.25 × 4 = $9.00
Step 1: Identify the unit price and quantity

Each cone costs $2.25 and Emma wants 4 cones

Step 2: Set up the multiplication

$2.25 × 4

Step 3: Multiply the cents

25¢ × 4 = 100¢ = $1.00

Step 4: Multiply the dollars

$2 × 4 = $8

Step 5: Add the results

$8 + $1 = $9

Emma needs $9.00
Final answer:

Emma needs $9.00 to buy 4 ice cream cones

Applied rules:

• Clue words: "each" indicates multiplication

• Separate calculation: Multiply dollars and cents separately

• Conversion: Convert excess cents to dollars if needed

Rules and methods, laws,...
Total = Price × Quantity
Multiplication Formula
Addition Clues
More, Total, Altogether
Addition keywords
Subtraction Clues
Left, Remaining, Spent
Subtraction keywords
Multiplication Clues
Each, Per, Times
Multiplication keywords
Key definitions:

Money word problem: A real-life scenario expressed in words that requires mathematical operations with money amounts to solve.

Clue words: Words in the problem that indicate which mathematical operation to use.

Addition: Combining amounts to find a total (more, total, altogether).

Subtraction: Finding what remains after spending or taking away (left, remaining, spent).

Multiplication: Finding total cost for multiple identical items (each, per, times).

Multi-step: Problems requiring more than one mathematical operation to solve.

Problem-solving methodology:
  1. Read carefully: Understand what the problem is asking
  2. Identify amounts: Find all the money amounts mentioned
  3. Find clue words: Determine which operation to use
  4. Set up calculation: Write the mathematical expression
  5. Solve: Perform the calculation with proper alignment
  6. Check: Verify your answer makes sense in context
Tip 1: Look for clue words to determine the operation needed.
Tip 2: Always align dollars with dollars and cents with cents when adding or subtracting.
Tip 3: When multiplying, calculate dollars and cents separately.
Tip 4: Always include the dollar sign ($) in your final answer.
Common errors: Misreading clue words, misaligning dollars and cents, forgetting to regroup when subtracting, not including dollar signs in answers.
Real-world applications: Shopping, budgeting, making change, splitting costs, saving money, planning expenses.
Formulas to know by heart:

• Addition: Total = Amount1 + Amount2 + ...

• Subtraction: Remaining = Initial - Spent

• Multiplication: Total Cost = Price × Quantity

• Division: Cost per item = Total Cost ÷ Number of Items

• Always align decimal points when adding/subtracting money

Solution: Exercises 4 to 5
4 Division word problem
Exercise 4
A pack of 6 pencils costs $4.50. How much does each pencil cost?
Definition:

Division word problem: A problem that requires dividing a total money amount by a number to find the cost per item. Look for words like "each," "per," "divided among," or "cost per."

Total cost
$4.50
Number of pencils
6
Cost per pencil
$4.50 ÷ 6 = $0.75
Step 1: Identify the total amount and number of items

Total cost: $4.50, Number of pencils: 6

Step 2: Set up the division

$4.50 ÷ 6

Step 3: Convert to cents for easier division

$4.50 = 450 cents

Step 4: Perform the division

450 ÷ 6 = 75

Step 5: Convert back to dollars

75 cents = $0.75

Step 6: Verify the answer

$0.75 × 6 = $4.50 ✓

Each pencil costs $0.75
Final answer:

Each pencil costs $0.75

Applied rules:

• Clue words: "each" indicates division

• Conversion: Convert to cents for easier division

• Verification: Multiply back to check your division

5 Multi-step word problem
Exercise 5
David has $10.00. He buys a sandwich for $4.25 and a drink for $1.75. Then he finds $2.00 on the ground. How much money does he have now?
Definition:

Multi-step word problem: A problem that requires more than one mathematical operation to solve. Solve one step at a time in the order given.

Start
$10.00
After buying
$10.00 - $4.25 - $1.75 = $4.00
After finding money
$4.00 + $2.00 = $6.00
Step 1: Start with the initial amount

David begins with $10.00

Step 2: Calculate the total spent

$4.25 + $1.75 = $6.00

Step 3: Subtract the spending from the initial amount

$10.00 - $6.00 = $4.00

Step 4: Add the money found

$4.00 + $2.00 = $6.00

Step 5: State the final answer

David has $6.00 now

Step 6: Verify the calculation

$10.00 - $4.25 - $1.75 + $2.00 = $6.00 ✓

David has $6.00
Final answer:

David has $6.00 now

Applied rules:

• Sequential steps: Solve multi-step problems one operation at a time

• Combine like operations: Add all additions together, subtract all subtractions together

• Verification: Check your final answer by working backwards if possible

Complete Summary: Money Word Problems
Total = Price × Quantity
Multiplication Formula
Key definitions:

Money word problem: A real-life scenario expressed in words that requires mathematical operations with money amounts to solve. These problems help connect math to everyday situations.

Clue words: Words in the problem that indicate which mathematical operation to use. These are essential for determining the correct approach.

Addition: Combining amounts to find a total. Clue words include "more," "total," "altogether," "sum," "combined," "added to."

Subtraction: Finding what remains after spending or taking away. Clue words include "left," "remaining," "spent," "used," "difference," "less than."

Multiplication: Finding total cost for multiple identical items. Clue words include "each," "per," "times," "groups of," "total for all," "multiplied by."

Division: Finding the cost per item or how many items can be bought. Clue words include "each," "per," "divided among," "cost per," "split equally."

Multi-step: Problems requiring more than one mathematical operation to solve. These require careful attention to the sequence of operations.

Complete problem-solving methodology:
  1. Read carefully: Understand the full context of the problem
  2. Identify amounts: Find all the money amounts mentioned
  3. Find clue words: Determine which operation(s) to use
  4. Plan the solution: Decide the order of operations needed
  5. Set up calculation: Write the mathematical expressions
  6. Solve: Perform calculations with proper alignment
  7. Check: Verify your answer makes sense in context
Tip 1: Look for clue words to determine the operation needed, but read the full context to confirm.
Tip 2: Always align dollars with dollars and cents with cents when adding or subtracting.
Tip 3: When multiplying, calculate dollars and cents separately, then combine.
Tip 4: Always include the dollar sign ($) in your final answer.

Tip 5: For multi-step problems, solve one operation at a time in the order given.
Common errors: Misreading clue words, misaligning dollars and cents, forgetting to regroup when subtracting, not including dollar signs in answers, performing operations in the wrong order for multi-step problems.
Real-world applications: Shopping (calculating totals and change), budgeting (tracking income and expenses), making change, splitting costs among friends, saving money goals, planning for purchases.
Key formulas and principles:

• Addition: Total = Amount1 + Amount2 + ...

• Subtraction: Remaining = Initial - Spent

• Multiplication: Total Cost = Price × Quantity

• Division: Cost per item = Total Cost ÷ Number of Items

• Always align decimal points when adding/subtracting money

• When multiplying money, calculate dollars and cents separately

• For division, convert to cents first for easier calculation

• Multi-step problems: perform operations in the sequence described

Visual Guide to Money Word Problems

💰
Addition Problems

Keywords: more, total, altogether, sum

Example: $2.50 + $1.75 = $4.25

Align dollars with dollars

Add cents first, then dollars

Subtraction Problems

Keywords: left, remaining, spent, difference

Example: $5.00 - $2.75 = $2.25

Borrow from dollars if needed

Remember: 1 dollar = 100 cents

Multiplication Problems

Keywords: each, per, times, groups of

Example: $1.50 × 3 = $4.50

Multiply dollars and cents separately

Combine results at the end

Division Problems

Keywords: each, per, divided among

Example: $6.00 ÷ 4 = $1.50

Convert to cents for easier division

Convert back to dollars at end

Questions & Answers

Question: How can I tell if a money word problem is asking me to add, subtract, multiply, or divide? Sometimes the words confuse me.

Answer: Look for these specific clue words in the problem:

  • Addition (+): "more," "total," "altogether," "sum," "combined," "in all," "added to"
  • Subtraction (-): "left," "remaining," "spent," "used," "difference," "less than," "take away"
  • Multiplication (×): "each," "per," "times," "groups of," "total for all," "multiplied by"
  • Division (÷): "each," "per," "divided among," "cost per," "split equally," "shared"

Example: "Sarah has $5 and gets $3 more" → "more" means addition

Example: "Tom had $10 and spent $4" → "spent" means subtraction

Example: "Each apple costs $2 and she buys 5" → "each" and multiple items means multiplication

Example: "Pack of 4 costs $8, how much for each?" → "each" means division

Question: When I'm adding or subtracting money, I sometimes forget how to align the numbers. Should I line up the dollar signs?

Answer: Yes, you should align the decimal points, not the dollar signs. This ensures that dollars are added to dollars and cents are added to cents:

  • Write the numbers vertically with the decimal points lined up
  • This automatically aligns the dollars column and the cents column
  • Example:

$3.25

+ $2.50

-------

$5.75

The decimal points are aligned, so dollars (3 and 2) are in the same column and cents (25 and 50) are in the same column.

Always include the dollar sign in your final answer, but align by decimal points during calculation!

Question: Some problems have multiple steps, and I get confused about what to do first. How should I approach these?

Answer: For multi-step problems, follow these steps:

  • Read the entire problem carefully to understand the full situation
  • Identify what happens first, second, and so on
  • Solve one step at a time in the order given
  • Keep track of your intermediate answers for the next steps

Example: "David has $10. He spends $4, then finds $2 more."

Step 1: Start with $10

Step 2: Subtract $4 (now he has $6)

Step 3: Add $2 (now he has $8)

The final answer is $8.

Don't try to do everything at once - solve one piece at a time!