Swoopo Bidding

Question

Suppose you see a computer for sale on Swoopo. It is just a normal computer worth a few hundred dollars. Bidding starts at 1 cent, and for each 1 cent bid, the cost to bid is 60 cents. When it finally sells, the winning price is $75. What did the swoopo company take in for the computer?

Answer 1

For every 1 cent bid, swoopo gets 60 cents. Since there are 100 cents in a dollar, we need to find out how much money Swoopo will make in a dollar's worth of bid. We get 60 times 100 = 6000 cents. This makes 60 dollars for Swoopo. So in summary, for every dollar, Swoopo makes 60 dollars. Now we need to multiply 75 times 60 to get the total amount of money that Swoopo made. The Answer is $4,500.