# estimate

**Definition of Estimate**

- To estimate is to find a number that is close to the exact answer.

**Examples of Estimate**

- A pen costs $4.15. Estimate the cost of 5 such pens.

$4.15 is closer to $4 than $5. So, the cost of 5 such pens would be about $20.

**Solved Example on Estimate**

Tim and his wife together earn $9,635 and spend $4,385 every month. Estimate the amount of money they save every month to the nearest thousand.

**Choices:**

A. $4,000

B. $14,000

C. $5,000

D. $6,000

**Correct Answer: D**

**Solution:**

**Step 1: **Tim and his wife together earn $9,635 and spend $4,385 every month.

**Step 2:** $9,635 rounded to the nearest thousand is $10,000.

**Step 3:** $4,385 rounded to the nearest thousand is $4,000.

**Step 4: **The amount they save every month

= 10,000 – 4,000 = 6,000.

**Step 5:** So, Tim and his wife save about $6,000 every month.

**Related Terms for Estimate**

**Real-world Connections for Estimate **

- Many companies use estimating techniques to find out the cost of buying materials or machineries, the cost involved in manufacturing goods, etc. The process of estimation gives them a fair idea of the amount to be invested.