Money and Financial Literacy — Answer Key
Part A: Fix the Sentence
Each sentence has an error. Rewrite it correctly on the line.
1. Fix the sentence:
10% tax on $20 is $20.10.
Corrected: 10% tax on $20 is $2.00.
Ten percent of twenty dollars equals two dollars, not ten cents extra.
2. Fix the sentence:
A 5% tax on $40 cost $20.
Corrected: A 5% tax on $40 costs $2.
Five percent of forty dollars is two dollars, and present tense fits this sentence.
3. Fix the sentence:
Three quarters equal $1.00.
Corrected: Three quarters equal $0.75.
Three times twenty-five cents equals seventy-five cents, not a full dollar yet.
Part B: Fill in the Blank
Write the missing word or number on each line.
1. An 8% sales tax on a $50 jacket is $4.00.
Eight percent of fifty dollars is exactly four dollars in sales tax.
2. A 10% tip on a $30 meal is $3.00.
Ten percent of thirty dollars equals three dollars for the tip.
3. Four dimes plus two nickels equal 50 cents.
Forty cents plus ten cents equals fifty cents in total coins.
4. A 5% tax on $20 is $1.00.
Five percent of twenty dollars equals exactly one dollar in tax.
Part C: Short Answer
Answer each question in one or two complete sentences.
1. How do you find 10% of any whole-dollar amount quickly?
Sample answer: Move the decimal point one place to the left, so 10% of $40 becomes $4.00.
Shifting the decimal one spot left gives you exactly one tenth of the value.
2. Name three coin combinations that make exactly 75 cents.
Sample answer: Three quarters; or two quarters plus two dimes plus one nickel; or seven dimes plus one nickel.
Many combinations equal seventy-five cents because coins combine in flexible ways together.