Subtract the decimals by aligning the decimal points. Regroup 1 tenth into 10 hundredths.

• 7.05 − 4.16
• 5 hundredths − 6 hundredths: not enough, regroup
• 7 ones 0 tenths 5 hundredths = 6 ones 10 tenths 5 hundredths
• 10 tenths 5 hundredths = 9 tenths 15 hundredths (since 1 tenth = 10 hundredths)
• Actually: 7.05 = 6 ones 9 tenths 15 hundredths
• 15 hundredths − 6 hundredths = 9 hundredths
• 9 tenths − 1 tenth = 8 tenths
• 6 ones − 4 ones = 2 ones
• 7.05 − 4.16 = 2.89
• Check: 2.89 + 4.16 = 7.05 ✓

Final Answer: 2.89