Give the step-by-step reasoning process and then the final answer. John buys game loot boxes for $5 each. The average value of items inside is $3.5.  He spends $40 on loot boxes. What is the average amount he lost?
He bought 40 / 5 = 8 boxes. He loses an average of 5 - 3.5 = $1.50 per box. So he loses an average of 1.5 * 8 = $12.
The final answer: 12.