Multiplying and dividing money means using the four operations you already know to solve real-life problems involving dollars and cents. You treat money amounts like decimals and follow the same rules you use for decimal operations.
Money uses two decimal places. Keep the decimal point in the correct place to show dollars and cents clearly.
To multiply money, multiply the numbers as decimals. Then make sure the final answer has two digits after the decimal point to show cents.
Always check that your answer makes sense. If you multiply by a number greater than 1, the total should be larger than the original amount.
To divide money, divide the decimal amount as you normally would. Your answer should still be written using a dollar sign and two digits after the decimal point.
Division with money often shows how much each person pays or receives. Look for keywords like “each,” “per,” or “shared equally.”
Many money problems use multiplication or division to model situations such as buying items, comparing prices, or sharing costs fairly.
Underline important information in a word problem. Decide whether the situation is “groups of” (multiply) or “shared among” (divide).
Estimating helps you decide if your multiplication or division answer is reasonable. Round money amounts to the nearest whole dollar before estimating.
If your estimate and final answer are far apart, recheck your multiplication or division steps.