Let's do this step by step!
So, the balance in his wallet is $5.50 right now. But then he gets hungry and bored, so he gets a drink for $3.25 and a $2 magazine.
So, we need to subtract what he spent from the total. Let's find total he spent on the drink and magazine by adding up the two. $3.25+$2.00=$5.25.
Now subtract this from the balance of his wallet: $5.50-$5.25=0.25. He only has a quarter!! Thankfully, his friend repays him $3.50.
Let's add this to the quarter: $3.50+0.25= $3.75. Now, he has a total balance of $3.75.
Hope this helped! Have a nice day!