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Well, if 130 people gave you a penny, you would end up with 130 cents. Now, there are 100 cents in a dollar ($), so subtract 100 from 130 to take out a dollar. You know subtract 100 because the number of pennies you have begins with one hundred. If you had 260 cents, you would subtract 200 cents or two dollars from your number, and so on.

So, after subtracting the dollar from your 130 cents, you have 30 pennies left over. Meaning that you have 30 cents. So, remembering that you have already found that you have one dollar, now you also add that you have 30 cents, you can state that you have one dollar and thirty cents, or $1.30.

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