Step 1 :Let's denote the number of 1-dollar bills as x and the number of 5-dollar bills as y. According to the problem, x = 4y.
Step 2 :The expected value of a random variable is the sum of the possible values each multiplied by their respective probabilities. In this case, the possible values are 1, 5, and 20 dollars.
Step 3 :The probability of drawing a 1-dollar bill is the number of 1-dollar bills divided by the total number of bills. Similarly, the probability of drawing a 5-dollar bill is the number of 5-dollar bills divided by the total number of bills, and the probability of drawing a 20-dollar bill is 1 divided by the total number of bills (since there is only one 20-dollar bill).
Step 4 :The expected value is given by: E = (1 * P(1-dollar bill) + 5 * P(5-dollar bill) + 20 * P(20-dollar bill)) = 2.5
Step 5 :Substituting the probabilities and the relationship between x and y into the equation, we get: 2.5 = (1 * x/(x+y+1) + 5 * y/(x+y+1) + 20 * 1/(x+y+1))
Step 6 :Solving this equation for x, we find that x = 20.
Step 7 :Final Answer: The number of 1-dollar bills in the envelope is \(\boxed{20}\).