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?

general knowledge math & puzzles

  1. 10

  2. 30

  3. 40

  4. 20

Show answer
Correct Option: D

AI Explanation

To determine the overall profit the man makes, we need to calculate the difference between the total amount he received from selling the horse and the total amount he spent on buying and re-buying the horse.

Let's break down the transactions:

  1. Initially, the man buys the horse for $60.
  2. He sells the horse after a year for $70, making a profit of $10.
  3. He buys the horse again for $80, incurring a loss of $10.
  4. Finally, he sells the horse for $90 after another year, making a profit of $10.

To calculate the overall profit, we add up the individual profits:

$10 (profit from selling the horse the first time) + $10 (profit from selling the horse the second time) = $20

Therefore, the overall profit the man makes is $20.

The correct answer is D) 20.

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