You need at least two denominators to find something in common between them. If that's 3 and 2, the common denominator is 6..
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Convert both fractions to their common denominator which is 32. 1/8 = 4/32 and 1/16 = 2/32. So the fraction between the two is 3/32.
The least common denominator is the least common multiple of the denominators of the fractions.
A common denominator is needed when adding or subtracting fractions of different denominators.
They are essentially the same. A common denominator is the common multiple of a set of denominators of a set of fractions.
You need at least two numbers to find a common denominator.