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.
Correct Answer: D
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.