Let the cost of each of the first three tires be \(x\). According to the holiday deal, when Sebastian buys three tires, he pays for them all, and the fourth tire costs only $5.
The total cost for the three tires and the fourth tire can be expressed as:
\[ 3x + 5 = 237.50 \]
Now, let's solve for \(x\):
- Subtract 5 from both sides:
\[ 3x = 237.50 - 5 \]
\[ 3x = 232.50 \]
- Divide both sides by 3 to find the cost of each of the first three tires:
\[ x = \frac{232.50}{3} = 77.50 \]
Thus, the cost of each of the first three tires is \($77.50\).
Therefore, the answer is \($77.50\).