Money - Conversion of Money

The Indian currency system is based on Rupees ($₹$) and Paise ($p$). Imagine $1$ Rupee as a complete whole and Paise as $100$ small parts that fit into it. The symbol $₹$ is always placed before the number, while $p$ is written after.

The basic conversion factor is $1 \text{ Rupee} = 100 \text{ Paise}$. This relationship is the foundation for all money-related calculations in Grade 4 math.

Money is often written in decimal form where a dot ($.$) separates the Rupees from the Paise. For example, in $₹ 25.50$, the digits to the left of the dot ($25$) are Rupees and the two digits to the right ($50$) are Paise. You can visualize the dot as a wall separating the bigger units from the smaller ones.

To convert Rupees into Paise, we multiply the amount by $100$. Visually, if the amount is in decimals, you move the decimal point two places to the right and remove the $₹$ symbol. Example: $₹ 7.00$ becomes $700 \text{ p}$.

To convert Paise into Rupees, we divide the amount by $100$. A quick visual trick is to count two digits from the right side of the paise number and insert a decimal point. For example, $450 \text{ p}$ becomes $₹ 4.50$.

The 'Two-Digit Rule' is essential for writing paise. Since $100$ paise make a rupee, the paise part must always occupy two decimal places. If you have $5$ paise, it must be written as $₹ 0.05$ (with a placeholder zero) to show it is less than $10$ paise.

When converting an amount that has both rupees and paise into total paise, you convert the rupees first and then add the remaining paise. For example, $₹ 2$ and $50$ paise is $(2 \times 100) + 50 = 250 \text{ p}$.