A man buys a goat for
- Then he buys it back for
- How much did he make?
The Correct Answer and Explanation is:
Let’s break down this transaction step by step:
- The man buys a goat for 70.
- Later, he sells the goat for 90.
From this, his profit is calculated by subtracting the buying price from the selling price:
Profit = Selling Price – Buying Price = 90 – 70 = 20
Thus, the man made a profit of 20.
Detailed Explanation
In basic terms, profit refers to the positive difference between the amount earned from selling something and the amount spent to acquire it. In this scenario, the man initially buys the goat for 70. This means he spent 70 to own the goat.
At a later point, he sells the goat for 90. The sale brings in 90, but since he originally spent 70 to buy the goat, his actual earnings from this transaction are:
90 (earned) minus 70 (spent) = 20 profit.
An important point to clarify is that the wording might confuse some people. If the man buys the goat for 70, sells it for 90, and that’s the end of the transaction, his net profit is 20.
However, if the question means the man buys the goat for 70, sells it for 90, and then buys the goat back for 90, the calculation changes:
- Buys goat initially for 70 (spends 70)
- Sells goat for 90 (earns 90, total profit = 20)
- Buys the goat back for 90 (spends 90 again)
At this point, he owns the goat again but has spent:
70 initially, earned 90, then spent 90 again
Total expenditure = 70 + 90 = 160
Total earnings = 90
So in total, he’s down by 70. But the goat is back in his possession, so his actual monetary gain depends on future actions.
But if the question only focuses on how much he made when he sold the goat for 90, the correct answer is 20 profit.
Let’s break down this transaction step by step:
- The man buys a goat for 70.
- Later, he sells the goat for 90.
From this, his profit is calculated by subtracting the buying price from the selling price:
Profit = Selling Price – Buying Price = 90 – 70 = 20
Thus, the man made a profit of 20.
At this point, he owns the goat again but has spent:
70 initially, earned 90, then spent 90 again
Total expenditure = 70 + 90 = 160
Total earnings = 90
So in total, he’s down by 70. But the goat is back in his possession, so his actual monetary gain depends on future actions.
But if the question only focuses on how much he made when he sold the goat for 90, the correct answer is 20 profit.
