Depending on its position, each digit in a number can have a different value – even if it is the same digit. Consider writing the amount of 22 dollars.

Although the 2 digit appears twice, the value differs depending on the place value. The 2 furthest to the left is in the tens place while the other 2 is in the ones place. Furthermore, place value can be used to write numbers in expanded form. $22.00 = $10* 2 + $1* 2 When a number is written in expanded form, each digit is multiplied by its corresponding place value before being added together. In the case of currency, the expanded form can represent different denominations. Adding 2 ten-dollar bills and 2 one-dollar bills together makes twenty-two dollars. Consider another example.

The importance of place value in numbers can be seen by breaking this number down into digits and place values.

Digit	Place Value	Value
4	Ten-thousands	40 000
7	Thousands	7 000
2	Hundreds	200
9	Tens	90
7	Ones	1
1	Tenths	0.1
5	Hundredths	0.05
8	Thousandths	0.008