Question

1. A classic problem. Anna bought a horse for $50 and sold it

for $60. She then bought the horse back for $70 and sold it
again for $80. What do you think was the financial outcome
of these transactions? The woman ...
() Lost $10
() Earned $20
() Lost $20
() Came out even
() Earned $10
() Other (Describe.)

Answer 1

For this case we have the following situation:

Initial capital: $50

Sale for $60: Then he made a profit of $10. ($60- $50 = $10)

Initial capital 2: $60 + $10 (Invest additional $10)

Sale for $ 80: Then he made a profit of $ 10. ($80- $70 = $10)

Thus, it can be seen that during the transactions he obtained a profit of $10 + $10 = $20

Answer:

Option B

Earned $20