Take another look at the sentence:
A crumpled ten-dollar bill __________ at the bottom of the washing machine. Mike retrieved the money and drove to Tito's Taco Palace, where he bought fifteen tacos and a large root beer.
The ten-dollar bill rested at the bottom of the washing machine. Thus, you need a form of lie. Since the sentence is past tense, you need the simple past form. Consult the table below or review the rules.
|Infinitive||Definition||Simple Present||Simple Past||Past Participle||Present Participle|
|to lay||to put something down||lay(s)||laid||laid||laying|
|to lie||to rest or recline||lie(s)||lay||lain||lying|