Question 1150251
Odds of winning grand prize = 1/500
Odds of winning second prize = 2/500
Odds of winning third prize = 14/500
Odds of not winning any prize = 483/500
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You must also remember that it costs $7 for the ticket, so if you win the $1000 grand prize (for example), you're really only winning $993.  Same goes for any of the prizes.
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1/500 * 993 = 993/500
2/500 * 193 = 386/500
14/500 * 3 = 42/500
483/500 * -7 = -3381/500
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993/500 + 386/500 + 42/500 - 3381/500 
= -1960/500 
= -98/25 
= <b>-$3.92</b>