Solved Exercises on Money Word Problems for Class 4

Master money word problems: addition, subtraction, multiplication, division, and mixed operations through these 5 detailed exercises.

Solution: Exercises 1 to 3
1 Addition problem
Exercise 1
Sarah has $12.50 and her mom gives her $8.75 more. How much money does Sarah have now?
Definition:

Money addition: Adding amounts of money together, just like regular addition but with currency symbols

Addition method:
  1. Align decimal points vertically
  2. Add cents (right of decimal) first
  3. Add dollars (left of decimal)
  4. Carry over if needed
Starting amount
$12.50
Additional amount
$8.75
Total
$21.25
Step 1: Write the amounts vertically

$12.50 + $8.75

Align decimal points:
$12.50
+ $8.75
------

Step 2: Add the cents (right of decimal)

50 cents + 75 cents = 125 cents

Since 125 cents = $1.25, write down 25 and carry over 1 dollar

Step 3: Add the dollars (left of decimal) plus carry-over

$12 + $8 + $1 (carry-over) = $21

Step 4: Combine dollars and cents

$21 + $0.25 = $21.25

$12.50 + $8.75 = $21.25
Final answer:

Sarah has $21.25 now.

Applied rules:

• Decimal alignment: Always align decimal points when adding money

• Carry-over rule: 100 cents = $1.00

• Place value: Keep track of dollars and cents separately

Tip: Count the total cents first, then convert to dollars if necessary.
Common mistake: Forgetting to carry over when cents exceed 100.
2 Subtraction problem
Exercise 2
Tom had $25.00. He bought a book for $12.85 and a pen for $3.40. How much money does he have left?
Definition:

Money subtraction: Taking away amounts of money, often involving multiple purchases

Initial amount
$25.00
Total spent
$16.25
Remaining
$8.75
Step 1: Find total amount spent

Book cost: $12.85

Pen cost: $3.40

Total spent: $12.85 + $3.40 = $16.25

Step 2: Subtract total spent from initial amount

$25.00 - $16.25

Align decimals:
$25.00
- $16.25
------

Step 3: Subtract cents first

0 cents - 5 cents: Need to borrow

Borrow 1 from dollars: $24.100

100 cents - 25 cents = 75 cents

Step 4: Subtract dollars

$24 - $16 = $8

Step 5: Combine results

$8 + $0.75 = $8.75

$25.00 - $16.25 = $8.75
Final answer:

Tom has $8.75 left.

Applied rules:

• Multi-step problem: First add up expenses, then subtract from total

• Borrowing rule: When subtracting, borrow from higher place value if needed

• Order of operations: Handle all expenses before final subtraction

Tip: Add all expenses first, then subtract once from the starting amount.
Common mistake: Forgetting to borrow when subtracting smaller numbers from larger ones.
3 Multiplication problem
Exercise 3
If one toy costs $4.50, how much would 6 toys cost?
Definition:

Money multiplication: Finding the total cost when buying multiple items at the same price

Price per item
$4.50
Number of items
6
Total cost
$27.00
Step 1: Set up the multiplication

$4.50 × 6

Step 2: Multiply the cents part

50 cents × 6 = 300 cents

300 cents = $3.00

Step 3: Multiply the dollars part

$4 × 6 = $24

Step 4: Add the results together

$24 + $3.00 = $27.00

Step 5: Alternative method (long multiplication)

4.50 × 6:
4.50
× 6
----
27.00

$4.50 × 6 = $27.00
Final answer:

Six toys would cost $27.00.

Applied rules:

• Multiplication principle: Total = Price per unit × Number of units

• Decimal handling: Keep track of decimal places in the final answer

• Currency conversion: Convert cents to dollars when needed

Tip: Break down the multiplication: multiply dollars and cents separately, then add.
Common mistake: Forgetting to handle the decimal point correctly in multiplication.
Money Operations Guide
\$Amount + \$Amount = \$Total
Money Addition
Addition
\$A + \$B = \$C
Adding money amounts
Subtraction
\$A - \$B = \$C
Finding remaining money
Multiplication
\$A × N = \$C
Finding total cost
Division
\$A ÷ N = \$C
Finding per-unit cost
Key definitions:

Dollar: Main unit of currency (symbol: $)

Cents: Smaller unit of currency (100 cents = $1.00)

Total cost: Sum of all money spent

Change: Money returned after purchase

Money Problem Solving Steps:
  1. Read carefully: Identify what is given and what is asked
  2. Identify operation: Determine if it's addition, subtraction, multiplication, or division
  3. Set up calculation: Write the numbers with proper decimal alignment
  4. Solve: Perform the mathematical operation
  5. Check: Verify the answer makes sense in context
Tip 1: Always align decimal points when adding or subtracting money.
Tip 2: Remember that 100 cents equal 1 dollar.
Tip 3: For multiplication, multiply dollars and cents separately.
Tip 4: Check if your answer is reasonable (e.g., total cost should be higher than individual prices).
Common errors: Misaligning decimals, forgetting to carry over, incorrect operation selection.
Key formulas: Total cost = Unit price × Quantity, Change = Paid - Cost.
Essential Money Rules:

• Align decimals when adding/subtracting: $12.50 + $3.25

• Remember: 100 cents = $1.00

• Total cost = Price per item × Number of items

• Change = Amount paid - Total cost

• Always check if your answer makes sense in real-world context

Solution: Exercises 4 to 5
4 Division problem
Exercise 4
Emma has $36.00 and wants to buy 4 identical notebooks. How much does each notebook cost?
Definition:

Money division: Finding the cost per item when dividing a total amount equally among multiple items

Total amount
$36.00
Number of items
4
Cost per item
$9.00
Step 1: Set up the division

$36.00 ÷ 4

Step 2: Divide the dollars

$36 ÷ 4 = $9

Step 3: Handle the cents

0 cents ÷ 4 = 0 cents

Step 4: Combine the results

$9 + $0.00 = $9.00

Step 5: Verify the answer

Check: $9.00 × 4 = $36.00 ✓

$36.00 ÷ 4 = $9.00
Final answer:

Each notebook costs $9.00.

Applied rules:

• Division principle: Cost per unit = Total cost ÷ Number of units

• Verification: Multiply the answer by the number of units to check

• Equal sharing: Division helps distribute money equally

Tip: Always verify division by multiplying back to check your answer.
Common mistake: Forgetting to include cents in the division process.
5 Mixed operations problem
Exercise 5
Jack earned $20 from his allowance and $15 from doing chores. He spent $12.50 on a game and $8.75 on snacks. How much money does he have left?
Definition:

Mixed operations: Problems requiring multiple operations (addition and subtraction) to find the final amount

Total income
$35.00
Total expenses
$21.25
Remaining
$13.75
Step 1: Calculate total income

Allowance: $20.00

Chores: $15.00

Total income: $20.00 + $15.00 = $35.00

Step 2: Calculate total expenses

Game: $12.50

Snacks: $8.75

Total expenses: $12.50 + $8.75 = $21.25

Step 3: Find remaining money

Remaining = Total income - Total expenses

$35.00 - $21.25

Align decimals:
$35.00
- $21.25
------

Step 4: Perform subtraction

Cents: 0 - 5 (borrow): 10 - 5 = 5

Next: 9 - 2 = 7 (after borrowing)

Dollars: 34 - 21 = 13 (after borrowing)

Step 5: Combine results

$13.75

($20 + $15) - ($12.50 + $8.75) = $13.75
Final answer:

Jack has $13.75 left.

Applied rules:

• Order of operations: Calculate totals separately before combining

• Income vs expenses: Income adds money, expenses subtract money

• Verification: Check that income > expenses if expecting positive remainder

Tip: Organize information: group all income together and all expenses together.
Common mistake: Mixing up income and expense calculations.
Money Operations Fundamentals
\$A + \$B = \$C
Money Operations
Key definitions:

Money: Currency used for transactions (dollars, cents)

Income: Money received (allowances, earnings)

Expenses: Money spent (purchases, bills)

Balance: Remaining money after transactions

Complete methodology:
  1. Read the problem: Identify given amounts and what's being asked
  2. Identify operation: Determine if it's addition, subtraction, multiplication, or division
  3. Organize information: Group similar amounts (income, expenses, etc.)
  4. Perform calculation: Follow proper decimal alignment and arithmetic
  5. Verify answer: Check if the answer makes sense in context
Tip 1: Draw a simple table to organize income and expenses separately.
Tip 2: Estimate your answer first to check if the calculated result is reasonable.
Tip 3: Use mental math shortcuts: $0.50 × 4 = $2.00 (half dollar × 4).
Tip 4: Practice with real money scenarios to build financial literacy.
Common errors: Misaligning decimals, forgetting to carry/borrow, wrong operation choice.
Real-world applications: Budgeting, shopping, saving, earning money.
Money Calculation Rules:

• Decimal alignment: Always align decimal points when adding/subtracting

• Unit consistency: Keep dollars and cents together

• Conversion rule: 100 cents = $1.00

• Operation selection: Addition for income, subtraction for expenses

• Verification: Always check if your answer makes sense

Questions & Answers

Question: I'm confused about when to add money and when to subtract it. How do I know which operation to use in word problems?

Answer: Great question! Here's how to determine the operation:

  • Add money when: You receive more money, combine amounts, or calculate total income
  • Subtract money when: You spend money, make purchases, or find out how much is left

Keywords to look for:

  • For addition: "total," "altogether," "combined," "received," "earned," "more"
  • For subtraction: "spent," "cost," "remaining," "left," "change," "less"

Example: "Sarah earned $5 and $3" → Addition ($5 + $3)

Example: "John had $10 and spent $4" → Subtraction ($10 - $4)

Always read the problem carefully to understand what's happening to the money!

Question: When adding money like $3.95 + $2.45, I get confused with the decimal. How do I handle carrying over when the cents add up to more than 100?

Answer: When adding money with carrying over, follow these steps:

  • Step 1: Align decimal points vertically
  • Step 2: Add cents first (numbers after the decimal)
  • Step 3: If cents sum exceeds 100, convert excess to dollars
  • Step 4: Add dollars (numbers before decimal) plus any carried dollars

For $3.95 + $2.45:

  • Cents: 95 + 45 = 140 cents = $1.40
  • Write down 40 cents, carry over $1.00
  • Dollars: $3 + $2 + $1 (carried) = $6
  • Combine: $6.40

Remember: 100 cents = $1.00, so whenever you get 100+ cents, convert to dollars!

Question: How can I check if my money word problem answer is correct? Sometimes I'm not sure if I did the right steps.

Answer: Here are several ways to check your money problem answers:

  • Estimation: Round numbers to estimate if your answer is reasonable
  • Reverse operation: Add back subtracted amounts or subtract added amounts
  • Context check: Does your answer make sense in the real-world situation?
  • Re-read the question: Did you answer exactly what was asked?

Example: If you calculated that 5 apples costing $1.25 each cost $6.25:

  • Estimate: $1.25 ≈ $1.00, so 5 × $1.00 = $5.00 (close to $6.25)
  • Check: $1.25 × 5 = $6.25 ✓
  • Context: Makes sense that 5 items cost more than 1 item

Always take a moment to verify your work before moving on!

Question: What's the difference between multiplication and repeated addition when solving money problems?

Answer: Actually, multiplication IS repeated addition! They're the same mathematical concept, just different ways to represent it:

  • Repeated addition: $2.50 + $2.50 + $2.50 + $2.50 + $2.50 = $12.50
  • Multiplication: $2.50 × 5 = $12.50

Why use multiplication instead of repeated addition?

  • Efficiency: Much faster than adding many times
  • Accuracy: Less chance of making mistakes
  • Real-world connection: This is how we calculate bulk purchases

Both methods give the same answer, but multiplication is the preferred method for multiple identical items!

Question: Why do we need to learn money word problems? When will I use this in real life?

Answer: Money word problems teach essential life skills you'll use daily:

  • Shopping: Calculating total costs, determining if you have enough money
  • Budgeting: Managing allowances and tracking spending
  • Earning: Understanding wages, commissions, and savings
  • Banking: Checking balances, calculating interest

Examples of real-life situations:

  • Buying school supplies: "I have $20, items cost $15.25, how much change?"
  • Saving for toys: "I earn $2 weekly, need $24, how many weeks?"
  • Sharing money: "Got $30 gift, want to divide equally among 3 friends"

These skills build financial literacy that will help you manage money responsibly throughout life!