A man buys a horse for $60. He sells it for $70.
He then buys the horse back for $80. And he sells the horse for $90.
In the end, how much money did the man make or lose? Or did he break even?
Many people are unable to figure out the correct answer
Spend your time on thinking…. take your time!!!
Here is the answer!
Consider the trade-story as if it describes two separate trades, where:
In the first trade, the man buys something for $60 and sells it again for $70, so he makes a profit of $10.
In the second trade, the man buys something for $80 and sells it again for $90, so he makes again a profit of $10.
The man makes an overall profit of $10 + $10 = $20.
You can also look at the problem as follows:
The total expenses are $60 + $80 = $140 and the total earnings are $70 + $90 = $160. The overall profit is therefore $160 – $140 = $20.