April 27, 2010

Find the profit of the horse deal ?

A man decides to buy a nice horse. He pays \$60 for it, and he is
very content with the strong animal. After a year, the value of the
horse has increased to \$70 and he decides to sell the horse.
But already a few days later he regrets his decision to sell the
beautiful horse, and he buys it again. Unfortunately he has to pay
\$80 to get it back, so he loses \$10. After another year of owning
the horse, he finally decides to sell the horse for \$90.

What is the overall profit the man makes?

André Meneses said...

\$20

What matters is the difference between the selling price and the buying price.

He made \$10 profit the first time and \$10 more the second time.

Saying he lost \$10 when he bought the horse the second time is just to create distraction. That isn't entirely true.

Randy said...
This comment has been removed by the author.

\$20
-10+90=80
80-60=20
minusing 60 because it was original cost of the horse

Anonymous said...

\$0 profit.

70 - 60 = 10\$ Gaing
70 - 80 = -10\$
90 - 80 = 10\$
-----
10\$
--------

Anonymous said...

He spent 140 dollars to buy the horse both times.
He made 160 dollars selling the horse both times.

160 - 140 = 20 dollars profit

Kevin said...

He sold the horse for \$90 and the original price he bought the horse is \$60 so 90-60= 30 and take away 10 because he made a \$10 loss so 30-10 = 20 so the answer is

20 dollars profit

goma said...

\$10 லாபம்

Anonymous said...

\$20

SputniK_79 said...

2 transactions;

Bought a horse for 60, sold at 70 (made 10)

Bought a horse for 80, sold at 90 (made 10)

Whether or not it's the same horse is irrelevant, the total is still \$20.

grant said...

20 bucks -60+70=10 10-80=-70 -70+90=20

Varun Rao said...

Had he not sold the horse when its value was at 70. He would make profit of 30 when selling the horse when its value is 90. That means he made a loss of 10[30(missed out profit)-20(actual profit)].