Question

I need equations (with variables) for this problem. Include answer as well. Thank you!

Gamblers need to understand vigorish (also called vig or juice), but web definitions (e.g., urban dictionary) can be confusing. Here's a clearer explanation. If you are betting without a bookie, then the amount of the bet is the amount you lose or the amount you win. That is, if you bet $100, then you put $100 somewhere that everyone can see. If you lose, then you lose that $100. If you win, you get your $100 back and you get another $100. When you bet with a bookie, you have to pay a service charge, called the vigorish. If the bookie charges 12% vigorish, then you have to pay an additional $12 to place a $100 bet. If you lose, you lose the whole $112 that you gave the bookie. If you win, you get back your $112 and you get an additional $100. So essentially, you only pay the service charge if you lose. Suppose that a novice bettor doesn't know about vigorish. They make a bet by giving $100 to a bookie. If they lose, they get nothing back, which is just what the novice bettor expects. However, if they win, they do not get back $100. They get back less. This is not what the novice bettor expects. It can be upsetting. Create a set of equations that calculates the amount of winnings (profit) that bettors gets back if they win. It will need two known quantities: the vigorish and the amount given to the bookie (called the amount 'laid'). Test to see that it outputs $255 as the winnings when the vigorish is 15% and the amount laid is $300.

Answer 1