top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

What is the overall profit the man makes?

0 votes
666 views

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. However, 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.

posted Apr 23, 2014 by anonymous

Share this puzzle
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

+2 votes

total cost of buying the horse twice = 60+80 = $140
total gain from selling the horse twice = 70+90 = $160

If we pay no attention to the poor choice of words, and follow the spirit of the question, it seems that the man profits $20 from his buying and selling venture. There are, of course, serious problems with this conclusion.

First, we don't know how much the man spent on feed and other necessities for the horse while he owned it for two years, but one may incontrovertibly deduce that this amount would be more than $20.

Secondly, the question states that he "decides to sell the horse for $90." But not that the sale is ever completed. I can decide to sell a shiny nickel for $10, but until I find a willing buyer, I haven't profited the $9.95. Thus, until the sale is actually complete, no profit is made. (in fact he's showing a loss)

Finally, although less common, some people who own horses actually profit from the ownership by renting use of the horse or other such activities. Since no information about this is given, we cannot calculate that into the profit. It's possible that the man profited immensely from the venture if the horse earned him $200,000 a year in racing proceeds (for example.)

answer Jun 2, 2014 by anonymous



Similar Puzzles
+1 vote

Rahul got 12 and 1/4 dozen t-shirts in 12% discount to printed price and he sold two third of these t-shirts in 19% of profit to printed price , then he sold other t-shirts in printed price.
If his overall profit is 3626 rupee then what is the printed price of the t-shirt ?

0 votes

A man invests some money in a business and get 10% returns in a year. Next year he invests total output in other business and gets 20% returns in next year. In third year when he invests output after two year then he gets 30% loss in that year.
What is the overall profit or loss in percentage he receive ?

+2 votes

Ramesh got 49/4 dozen T-shirts in 12% discount to printed price and he sold two third of these T-shirts in 19% profit to printed price, then he sold other T-shirts in printed price. If his overall profit is 3626 rupee then what would be printed price of the T-shirt.

0 votes

A business has two steps.
In first step, there is 40% profit in total investment and in second step, there is 12% loss in the total output after first step.
What will be the overall percentage profit in the initial investment?

0 votes

Mohan got a profit of 40% in his investment of 7 lacs and loss of 12% in his investment of 8 lacs Rupees.
Find the overall profit in overall investment.

...