Dividing Money Amounts

Dividing Money Amounts
Coming up next: Making Change from a Purchase

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:00 Why Divide Money?
  • 0:32 Dividing Money by…
  • 1:20 Example One
  • 2:58 Dividing Money by Decimals
  • 3:29 Example Two
  • 4:33 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed
Lesson Transcript
Instructor: Kevin Newton

Kevin has edited encyclopedias, taught middle and high school history, and has a master's degree in Islamic law.

I'll be honest, dividing money is normally not as fun as multiplying money. After all, it's hard to let your hard-earned cash get reduced so quickly! However, this lesson shows how dividing money can help make sure you get the best deal on cookies and avoid getting ripped off.

Why Divide Money?

Let's face it--dividing money is not nearly as fun to think about as multiplying money. After all, most of us would be happy making more money rather than watching it get divided. However, being able to divide money amounts is a central part of being able to properly manage money. In this lesson, we're going to learn how to divide money by both whole numbers and decimals, allowing us to calculate everything from the cost per ounce of something to the price per square foot of a yard-raking business.

Dividing Money by Whole Numbers

First, let's start by dividing money by whole numbers. This is actually pretty easy since it follows many of the other rules for dividing any other number. By far, the most important part is to remember to make sure that your decimal points line up in both the dividend as well as the answer. Other than that, simply divide like you would any other amount, but with two important changes.

First, if you are dividing to find the unit cost of something, or anything else that would result in a dollar amount, be sure to remember the dollar sign. Second, you don't have to divide money amounts out much further than three decimal points, since we can't pay in fragments of a penny. In fact, the only reason that I say three decimal points is to be sure that you know whether or not to round up or down.

Example One

Let's take a look with this example. One of the best ways that dividing money amounts can help us is by letting us know which is the cheaper buy at the grocery store. Say that you are looking at two packs of cookies. One box of cookies is 24 ounces for $3.00. The other box of cookies is 40 ounces and costs $4.50. There is no difference in quality between the boxes, and to be fair, you'd be happy to have either. Because of this, the determining factor that will decide which box of cookies goes home with you is solely the price per ounce. So, how do you find that?

To find the price per ounce, simply divide the price by the number of ounces. Let's start with the smaller box. $3.00 divided by 24 ounces leaves us with a final price of 0.125 dollars per ounce. 24 goes into 3 zero times, 30 once, 60 twice, and then 120 five times. Normally, we wouldn't leave it to three decimal places, but since the difference can be so small here, this is one example of where it makes sense to do that.

So, what about the other box? $4.50 divided by 40 is 0.112 dollars per ounce. That's zero times into 4, one time into 45, one time into 50, and twice into 100. If you ended up with 0.1125, or 0.113, that just means you took the math further. In other words, you save a bit more than a penny by buying the larger box. That's fine by me, as I prefer the big box of cookies anyway.

Dividing Money by Decimals

Just when you thought that you had it all figured out, someone decided to throw a curveball at you and ask you to divide by a decimal. Luckily, this can be pretty easily done, as well. However, you've got to figure out what to do about that pesky decimal. Wouldn't it just be better for everyone if it just went away? Actually, that's a great idea. Move the decimal point to the right until you are left with a whole number. Now, move the decimal point in the dividend over by the same number of points. Then, just divide away as before!

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support