John buys 500 newspapers. Each newspaper sells for $2. He sells 80% of them. He buys them all for 75% less than the price at which he sells them. How much profit does he make?
Reason slowly and give your answer.
550
He sells 500 *.

8 = 400 newspapers.

He sells them for 400 * 2 = $800.

He gets a discount of 2 *.

75 = $1.

5 on the newspapers.

So he buys them for 2 - 1.

5 = $.

5.

So he spent 500 *.

5 = $250 buying them.

That means he made a profit of 800 - 250 = $550.

.

Final answer: 550