A man buys a horse for $60. He sells it for $70.
He then buys the horse back for $80. And he sells the horse for $90.
In the end, how much money did the man make or lose? Or did he break even?
Many people are unable to figure out the correct answer.
Answer To Buying And Selling A Horse Riddle
The short answer is the man profited $20. The man makes $10 each of the two times he sells the horse, for a profit of $20.
The answer can be verified by accounting for what the man has in each transaction.
Step 1: buys a horse for $60. The man is -$60 of cash from his starting point.
Step 2: sells the horse for $70. The man gets $70, so he is a net -$60 + $70 = $10 of cash.
Step 3: buys the horse for $80. The man spends $80, which means he is a net of $10 – $80 = -$70 cash.
Step 4: sells the horse for $90. The man gets $90, which means he is a net of -$70 + $90 = $20 cash.
In the end the man has $20 more than he started with.
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