It seems we will have two answers according to the way of resolvers thinking can be thinking with Maths or with Business, please write down and share in the comment:
Problem:
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"A person bought a house for $60,000. Soon thereafter they sold it for $70,000, upon moving out of town.
A few month later, they were transftered back to town and purchased the same house for $80,000, then the person grew tired of the house and resold it for $90,000."
Question: How much money did the person gain/lose (or break even) on the exchange? How you calculate this?
Result : $20,000
ReplyDeleteResolve:
1St: if we borrow money from Mr. A $60,000 to buy a house for $60,000 and then we sold it for $70,000 and payback to Mr. A $60,000 => cash on hand $10,000
2nd: if we borrow again $70,000 to buy the same house for $80,000, and then we resold it for $90,000 and finishly payback to Mr. A $70,000 => Cash on hand $20,000
Therefore total= 1st & 2nd => $20,000 gain
The answer is: Total of Selling Amount - Total of Purchasing Amount => 160,000 - 140,000 = 20,000
ReplyDelete:)
The answer = 20000-interest rate
ReplyDelete-60,000
ReplyDelete+70,000
-80,000
+90,000
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+20,000
So he gain 20,000$
Note: we don't care how he got the money from.