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:
A 15% tip on $20 is $5.
Corrected: A 15% tip on $20 is $3.
Fifteen percent of twenty dollars equals three dollars total, not five dollars.
2. Fix the sentence:
Two quarters and one dime is 75 cents.
Corrected: Two quarters and one dime is 60 cents.
Fifty cents plus ten cents equals sixty cents, not seventy-five cents at all.
3. Fix the sentence:
8% tax on $25 are $20.
Corrected: 8% tax on $25 is $2.
Eight percent of twenty-five dollars equals two dollars; verb agreement also matters.
Part B: Fill in the Blank
Write the missing word or number on each line.
1. A 5% tax on a $60 game is $3.00.
Five percent of sixty dollars equals three dollars in sales tax.
2. A 10% tip on a $25 lunch is $2.50.
Ten percent of twenty-five dollars equals two dollars and fifty cents.
3. Five nickels and two dimes equal 45 cents.
Twenty-five cents plus twenty cents equals forty-five cents in total.
4. An 8% tax on a $100 bike is $8.00.
Eight percent of one hundred dollars equals eight dollars in tax.
Part C: Short Answer
Answer each question in one or two complete sentences.
1. Explain how to calculate a 5% tax on any amount.
Sample answer: Find 10% by moving the decimal one place left, then take half of that result for 5%.
Breaking percentages into easier parts makes mental math faster and more accurate overall.
2. List two ways to make exactly $1.00 using only coins.
Sample answer: Four quarters; or ten dimes; or twenty nickels; or two quarters plus five dimes.
Multiple coin combinations equal one dollar because coin values are designed to combine.