The table shows the annual profits (in millions of dollars) of an online skateboard company from 2017 to 2021. Positive numbers represent gains, while negative numbers represent losses. Which statement describes the profit over the five-year period?

Question

2017 = -2.4

2018 = 0.45

2019 = -6.5

2020 = -2.4

2021 = 3.75

is it a Loss of $2.3 million or a Gain of $2.3 million?

Answer 1

To determine the overall profit or loss over the five-year period from 2017 to 2021, we need to sum the annual profits for each year:

• 2017: -2.4 million
• 2018: 0.45 million
• 2019: -6.5 million
• 2020: -2.4 million
• 2021: 3.75 million

Now, we calculate the total profit:

\[ Total = (-2.4) + 0.45 + (-6.5) + (-2.4) + 3.75 \]

Calculating step-by-step:

1. \(-2.4 + 0.45 = -1.95\)
2. \(-1.95 - 6.5 = -8.45\)
3. \(-8.45 - 2.4 = -10.85\)
4. \(-10.85 + 3.75 = -7.1\)

The total profit over the five-year period is \(-7.1\) million dollars.

Since the final result is negative, it indicates a loss. Therefore, the statement describes a loss of $7.1 million, not a gain of $2.3 million.