The smallest bills and coins means we use the maximum available bill/coin till the amount gets to 0. So, the smallest bills and coin for a change of $3.50 are: one $2 bill, one $1 bill and one 50 cent coin.
The given parameters are:
[tex]Debt = \$16.50[/tex]
[tex]Cash =\$20[/tex]
[tex]Change = \$3.50[/tex]
To represent the change using the smallest bills and coins, we have:
[tex]Change = \$2 + \$1 + \$0.50[/tex]
This means that the smallest bill and coin the customer can get is one $2 bill, one $1 bill and one 50 cent coin.
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