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welcome to this edition of making change should make sense in this particular video we'll answer the following question why do some people pay five dollars and five cents when their bill is only one dollar and three cents in order to make sense of that let's first talk about change in general assume that a customer's total bill is three dollars and let's further assume that the customer has three $1 bills in their pocket so the customer pays with those three dollars in this case it's easy to see that the bill is equal to what they paid so we owe that customer no change at all now of course it's more typical that a customer won't have exact change so let's say it the total bill is three dollars but the customer has a five dollar bill in their pocket in this particular situation it's clear that we're going to owe them something because the bill is only three dollars but they paid five dollars in this situation we would owe them two dollars now one method that is really nice for making sure that you have calculated the change correctly and it also helps the customer ensure that they're getting back the right amount to change is to count it back using this method so you'd say all right the bill is three dollars I owe you two dollars so that would be three four five and if we do it right that amount is always going to equal what they paid and that's because when we look at the math the bill plus the change is always equal to the amount that they paid let's look at another situation let's say if the total bill is six dollars and the customer pays $10 because they have a $10 bill in their pocket in this situation we clearly owe them some change and it looks like we would owe them four dollars in the situation so again using the count back method we would say all right your bill was six dollars I owe you four dollars so six and one is seven eight nine ten so again what we give them back is equivalent to what they paid because the change plus the bill will equal how much they paid all right now let's look at this scenario this gets closer to answering the question that we posed at the beginning of the video let's assume that the total bill is six dollars and the customer actually pays eleven dollars so the customer pulls out of ten one and pays using both those bills now it seems like the customer could have just given us the 10 because of course the 10 would cover the six dollar bill why did the customer decide to give us this one dollar bill as well well let's calculate the change and then we can make sense of it if the customer paid $11 but the bill is only six dollars we're going to owe them five dollars and change and the customer is smart enough to predict that if they are owed five dollars and change the merchants will probably give them a five dollar bill and that's exactly what they're trying to do they're trying to eliminate the amount of money that they need to carry in their pockets in their purse and their wallet whatever it might be so instead of having that one dollar bill still remaining in their pocket and then getting four $1 bills back they'd rather just have a five dollar bill in return so in this particular situation using the count back method we it's okay we would say okay your bill with six dollars plus five would be 11 and 11 is what they paid originally now what we're really doing as I mentioned here is just exchanging our smaller bills for larger ones and I think you'll be able to see that more easily on the next slide so let's go through those two situations we just talked about let's assume in one situation the bill is six dollars and the customer is only paying with this 10 dollar bill that the customer has in his or her wallet so in this situation the ten dollar bill is gone because that's what they used to pay and the customer still has the one dollar bill left in their pocket so we give them four dollars back now the customer has five one dollar bills in this next situation where the total bill is six dollars just like previously let's assume that the customer pays with a 10 and with the one so the customer is paying with 11 dollars we're going to go that customer now five dollars back so now it's easy to see what would you rather have in your wallet five one dollar bills or just this one five dollar bill now in most situations most of the time people would rather have a higher bill because it simply takes up less room it's easier to carry so what we're seeing is that customers are strategically paying so that they will limit the number of bills that they have in their wallet now of course this works with change as well and now we'll answer the question that we posed at the beginning of the video let's say a customer's bill is one dollar and three cents and let's say that the customer has five dollars and five cents in his or her wallet and we'll go through two situations in this first situation let's just assume that the customer pays with the five dollar bill so if the customer pays five dollars for a bill that is one dollar and three cents we owe that customer $3.97 change so the five dollar bill is gone they gave it to us now we're going to give them back $3.97 remember they still have the nickel sitting in their pocket so here's the $3.97 there's three 325 350 375 385 395 396 397 so this is what they're left with in their pocket now let's look at the next situation again the bill is one dollar and three cents the customer has five dollars and five cents in their pocket and let's assume in this situation they're going to pay five dollars and five cents they're going to give us everything that was in their pocket if the bill is only one dollar and three cents we're going to owe them four dollars and two cents for change so let's look at what the change would look like they're going to give us the five dollars and five cents so that's gone and now we need to count back four dollars and two cents so there's four dollars one and two cents so again now it's easy to see by strategically paying with different denominations different coins we can limit the amount of change that we have to carry around so would you rather carry around all this change or would you rather carry around this right here and keep in mind they're equivalent amounts here we have three dollars 325 350 375 380 394 dollars four dollars and two cents what do we have right here four dollars and two cents it's just that it would be easier to carry this around than it would be to carry this around alright so the next time you need to make change I hope you're less confused and actually I hope you're pretty confident in that now you understand how you can do it Thanks
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