Regroup 1 one as 10 tenths, then subtract.

• 3 = 2 ones + 10 tenths
• 0.7 = 0 ones + 7 tenths
• Ones: 2 − 0 = 2
• Tenths: 10 − 7 = 3
• 3 − 0.7 = 2.3

Final Answer: 2.3