If displayed material is preceded by a heading, what would the margin for the displayed material be? The order of material in print is centered heading, displayed word problem, explanatory paragraph, questions re: the word problem. The item in question is after a centered heading, but the same question would go for cell 5 and cell 7 headings as well.
Thank you. It does appear that in your print the word problem is displayed and then discussed.
It is not logical to format the displayed material based on the margins of the heading that precedes it, because it is displayed not in order to set it off from the heading but in order to distinguish it from the discussion that follows it.
So, I'm convinced that it is appropriate to format the paragraph beginning "KimRee had $37 ..." in 5-3 with a blank line before and after.