What is the expected profit or…

Mathematics Questions

What is the expected profit or loss from purchasing one ticket in Angelo’s Pizza raffle, if 100 total tickets are sold and the prizes include a $25 gift certificate, a $15 gift certificate, and three $5 gift certificates? A. A loss of $0.55 B. A gain of $0.55 C. A loss of $0.45 D. A gain of $0.45

Short Answer

The initial investment was $55 in certificates, and the total revenue from ticket sales was $100. The profit is calculated by subtracting the investment from the revenue, resulting in a profit of $45.

Step-by-Step Solution

Step 1: Initial Investment

To calculate the profit, we first need to identify the initial amount invested. In this case, the amount is $55 which was invested in certificates. This sets the baseline for determining any financial gain or loss.

Step 2: Total Revenue from Ticket Sales

Next, we look at the total revenue generated from selling the tickets. The total sales amount to $100.00. This figure is crucial as it represents the total income received from the investment, allowing us to calculate the profit accurately.

Step 3: Calculating Profit

Finally, we calculate the profit by subtracting the initial investment from the total revenue. This can be computed as follows: Total Revenue – Initial Investment, which is $100 – $55 = $45. Therefore, the profit gained from this investment is $45.

Related Concepts

Initial investment

The initial amount of money that is invested before any returns or profits are generated, which serves as the baseline for financial calculations.

Total revenue

The total income generated from sales or investments, representing the overall financial gain before any deductions.

Profit

The financial gain calculated by subtracting the initial investment from the total revenue, indicating the amount of money made from an investment after accounting for the initial cost.

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