This is a problem I did with my 5th graders yesterday, but we seem to have found a few different answers. I have asked other adults and they come up with different answers as well.
Give this problem a try and let me know what you came up with and any reasoning you have behind your strategy.
A man buys a horse for $60 then sells it for $70. He buys it back for $80 and then sells it for $90. How much does the man make or lose in the horse-trading business?
Twitter: jeffsauer
(16 comments) says:
He breaks even…
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he only made $10.00 when he sold it the second time because he lost money the first time when he had to buy it back for 10.00 than he sold it for…does that make sense? lol
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am i right or is jeff right…lol
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i am going with greta.
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He made a $20.00 profit.
If you go about this in a general ledger accounting way. He received $70.00 and $90.00 from his sales = $160.00. He spent $60.00 and $80.00 on his purchases = $140.00. $160.00 in and $140.00 out = $20.00 profit.
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I agree with Connie. I didn’t do it the same way as she did but he made $10 (+10) on the 1st sale, lost $20 (-20) on the 2nd sale (from the original price) and made $30 (+30) on the 3rd sale (from the original price).
+10-20+30= +20 (profit)
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I’m with Connie and Dana…$20.00 net profit.
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He made 20.00
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If you consider that he may have sold it to one of his own clients and will be making money off of the board, lessons, trailoring and the hundred other fees involved it makes sense to repeatedly purchase and sell the same horse. Especially if it has a winning streak or multiple riders which will pay a minimun of $20/ hour to ride it! Just thought I would share that tidbit…
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he breaks even!!! Correct???
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i believe he is really out $40. he started with $60. he bought a horse. bye bye $60. he sold it. now he has $10…but he has nothing to show for it..no property…so he is now out a total of $50 he buys it back at $80 now out $130 but has a horse. he then sells it for $90. which gives him $10 again..but no horse. He is out $40. He may have made $20 but he still has $40 less than he started with…make sense??? hmmm
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what’s the answer?
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