Question

A man bought a horse for $60 and sold it for $70. Then he bought it back for $80 and sold it for $90. How much did he make or lose in the horse trading business? Please indicate:

Answer 1

Profit = $20

Step-by-step explanation:

It is given that a man bought a horse for $60 and sold it for $70. Then he bought it back for $80 and sold it for $90.

Total revenue = $70 + $90 = $160

Total expenditure = $60 + $80 = $140

The formula for profit is

`Profit = Revenue - Expenditure`

Substitute $160 for revenue and $140 for expenditure in the above formula.

`Profit = 160-140`

`Profit = $20`

Therefore, he make $20 in the horse trading business.