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A man buys a cow for $60, he then sells it for $70 – Riddle

A man buys a cow for $60. He sells the cow for $70. He then buys it back for $80. And sells it again for $90. In the end, how much money did he make or lose?

A man buys a cow for $60, he then sells it for $70 - Riddle - Startup Library

A man buys a cow for $60.

He sells the cow for $70.

He then buys it back for $80.

And sells it again for $90.

In the end, how much money did he make or lose? Or did he break even?

Although this is some basic math, a lot of people seem to argue on the correct answer. I’ll give you the correct answer and the math behind it.

The answer is $20.

On both transactions, he gained a total of $20. He netted $10 two times.

Let’s assume he is starting from 0. He now has to borrow $60 to buy the first cow. When he sells the cow for $70 he makes a $10 profit. His balance after paying back the lender is now $10.

He then buys back the cow for $80. In order to do so, he has to borrow $70, because he still has the $10 profit from the first transaction. When he sells the cow for $90 he has to pay back the $70 loan leaving him with a $20 net profit.

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