Question
Consider the following: - Loan repayment - Mining equipment maintenance cost (estimate 540 emeralds per month) - Potential income from mining (estimate 25000 emeralds per month) Do you make a profit or a loss?
Ask by Rodriguez Phillips. in South Africa
Feb 18,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
You make a profit of 24,460 emeralds per month.
Solution
To determine whether you make a profit or a loss, we need to calculate the net income from mining after accounting for the maintenance costs.
### Known Conditions:
1. **Potential Income from Mining**: 25000 emeralds per month
2. **Mining Equipment Maintenance Cost**: 540 emeralds per month
### Calculation Steps:
1. **Calculate Net Income**:
\[
\text{Net Income} = \text{Potential Income} - \text{Maintenance Cost}
\]
2. **Substituting the values**:
\[
\text{Net Income} = 25000 - 540
\]
3. **Perform the calculation**:
\[
\text{Net Income} = 24460
\]
### Conclusion:
Since the net income is positive (24460 emeralds), you make a profit of 24460 emeralds per month.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
With your potential income from mining estimated at 25,000 emeralds per month and maintenance costs of 540 emeralds, you can easily see your profit. After subtracting the maintenance cost from your income, you're left with a hefty 24,460 emeralds in profit each month! Talk about a win in the mining world! Remember, while the numbers look great, it's also crucial to keep other factors in mind such as unforeseen equipment repairs or market fluctuations that might affect your income. Staying informed and adaptable will keep those emeralds flowing!
