Money
Dollars and Cents
Definition Money
Money is what we use to buy things, like food and toys. Different places in the world use different kinds of money.
In the United States, the money is called the US dollar. The symbol for the dollar is \(\dollar\). We write dollar amounts with the dollar sign before the number, like \(\dollar 5\).
Money comes in metal coins and paper bills.
In the United States, the money is called the US dollar. The symbol for the dollar is \(\dollar\). We write dollar amounts with the dollar sign before the number, like \(\dollar 5\).
Money comes in metal coins and paper bills.
Definition Cent
Dollars can be broken into smaller parts called cents. Cents are used to pay for things that cost less than one dollar.1 dollar = 100 cents
Definition Coins and Bills
| 1 dollar |  |
| 2 dollars |  |
| 5 dollars |  |
| 10 dollars |  |
| 20 dollars |  |
| 1 cent=0.01 dollars |  |
| 5 cents=0.05 dollars |  |
| 10 cents=0.10 dollars |  |
| 25 cents=0.25 dollars |  |
| 50 cents=0.50 dollars |  |
Profit and Loss
Definition Profit and Loss
In a business, we can describe how well it is doing by calculating its profit or its loss. To do this, we need to know two things:Profit = Income - Expenses Loss is the money you lose when your expenses are greater than your income.Loss = Expenses - Income If income and expenses are exactly the same, there is no profit and no loss (we say the business breaks even).
- Income (or Revenue): The total amount of money you receive from selling something.
- Expenses (or Costs): The total amount of money you spend to make and sell your product.
Example
Sarah starts a lemonade stand.
- Her income from selling lemonade is \(10~\dollar\).
- Her expenses for lemons and sugar are \(4~\dollar\).
First, compare income and expenses: \(10~\dollar\) (income) and \(4~\dollar\) (expenses).
Since her income is greater than her expenses, we calculate a profit.$$\begin{aligned}\text{Profit} &= \text{Income} - \text{Expenses} \\ &= 10~\dollar - 4~\dollar \\ &= 6~\dollar\end{aligned}$$Sarah made a profit of \(6~\dollar\).
Since her income is greater than her expenses, we calculate a profit.$$\begin{aligned}\text{Profit} &= \text{Income} - \text{Expenses} \\ &= 10~\dollar - 4~\dollar \\ &= 6~\dollar\end{aligned}$$Sarah made a profit of \(6~\dollar\).