My question is: James buys 200 lotto tickets for 2 dollars each. Of those tickets 20% are winners. 80% of the winners are for 5 dollars. 1 ticket is the grand prize of $5,000. The other tickets win an average of $10. How much did he profit? Your thoughts:
He spent 200 * 2 = $400. There were 200 * .2 = 40 tickets. Of those 40 * .8 = 32 are 5 dollar winners. So they win 32 * 5 = $160. He has 40 - 32 = 8 other winning tickets. Of those 8 - 1 = 7 wins $10. So they win 10 * 7 = $70. So he won 5000 + 70 + 160 - 400 = $4830. The final answer: 4830.