Calculating Money
Calculating money means splitting each price into pounds and pence, since £1 = 100p, so £3.68 = £3 + 68p. This lets you add, subtract, multiply, and divide any prices, converting extra pence back into pounds.
Video Lesson
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Flashcards
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%20Money%20and%20Prices.webp)
%20Adding%20Prices.webp)
%20Subtracting%20Prices.webp)
%20Multiplying%20a%20Price.webp)
%20Dividing%20a%20Price.webp)
Understanding Money and Prices
- Money is measured using pounds (£) and pence (p).
- £, for example £.
How to Add Prices?
- Add pounds and pence separately, then combine the total.
- If the pence total is 100 or more, convert to pounds (e.g. £1.49).
How to Subtract Prices?
- Subtract pounds and pence separately.
- If there is not enough pence to subtract, exchange £1 for 100p first.
How to Multiply a Price?
- Multiply the pounds and pence separately, then add them together.
- Convert extra pence into pounds at the end if needed.
How to Divide a Price?
- Convert the full amount into pence first (e.g. £.
- Divide, then convert back to pounds and pence (e.g. £3.20).
Practice Questions
Test your understanding
If a coffee costs £2.50, what is the equivalent amount in pence?
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There are 100 pence in £1, so to change pounds into pence you multiply by 100.
, so £ pence.
A useful check: £2 is 200p and 50p is half a pound, and .
If you have £10 and spend £6.75, how much money is left?
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Spending means the amount goes down, so subtract: £10.00 − £6.75.
Setting it out in columns, write £10 as 10.00 so the decimal points line up. Exchanging gives .
A quick check: £6.75 + £ £10.00, so £3.25 is left.
You buy 2 items costing £2.35 each. What is the total cost?
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Two items at the same price means 2 × £2.35.
Double the pounds: 2 × £ £4. Double the pence: .
Total: £ £4.70.
You buy a sandwich for £3.45 and a drink for £1.55. What is the total cost?
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Add the two amounts with the decimal points lined up: £3.45 + £1.55.
The pence make , which is £1, so write 00 in the pence and carry £1 into the pounds.
Pounds: £3 + £1 + £1 (carried) = £5.
Total: £5.00.
A book costs £12.75. You pay with a £20 note. How much change should you receive?
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Change = £20.00 − £12.75.
Count up from the price: £ £13.00, then £13.00 + £ £20.00.
So the change is £ £7.25.
You have £15 and buy 4 notebooks at £2.25 each. How much money do you have left?
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First find the cost of the notebooks: 4 × £2.25.
4 × £ £8 and £1, so 4 notebooks cost £9.00.
Then take that off what you started with: £15.00 − £ £6.00.
Want to see the full working?
Interactive Activity
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Frequently asked questions
The questions students bump into most on this topic
There are 100 pence in one pound, so £1 = 100p and every 100p can be swapped for £1. The decimal point on a price splits pounds from pence: £3.68 means 3 pounds and 68 pence. When pence add up to 100 or more, move the extra pounds across: 117p is £1 and 17p.
Split each amount into pounds and pence, work them out separately, then put them back together. To add £3.68 and £1.49: the pounds give £3 + £1 = £4, the pence give 68p + 49p = 117p, and 117p is £1 and 17p, so the total is £5.17. The same split works for subtracting, multiplying and dividing.
Subtract the price from £10. If the price has pence and £10 does not, swap £1 for 100p first, so £10 becomes £9 and 100p. Then subtract pounds and pence separately: £9 − £5 = £4 and 100p − 17p = 83p. The change from £10 for a £5.17 lunch is £4.83.
Multiply the pounds and the pence separately, then add them, converting any extra pence into pounds. For 8 chocolate bars at £1.20 each: 8 × £1 = £8 and 8 × 20p = 160p, which is £1.60, so the total is £9.60. Check the pence at the end: if they reach 100 or more, move the pounds across.
Either divide the pounds and the pence separately, or turn the whole amount into pence first. To share £9.60 between 3 people: £9 ÷ 3 = £3 and 60p ÷ 3 = 20p, so £3.20 each. Or 960p ÷ 3 = 320p, which is £3.20. Both ways give the same answer, so use whichever is easier.
What's next?
Found this one hard? Go one step back first. Feeling confident? Carry on to the next lesson.
