Take a look at the sentence again:
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.
Lied, the form you chose, does not exist on the table; lied is not a form of either lay or lie.
| 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 |