Question

1. I bought a motorbike from a friend for $2,000. I sold it to another friend for $2,500. She decided she didn't want it, so I bought it back from her for $2,200. I sold it to another friend for $2,000, since he was desperately in need of transportation, and that was all that he could afford. What was my total profit or loss on all of these transactions?

Answer 1

You’d end up with $2,300 so you gained $300 from when you first bought the motorcycle

Answer 2

We can make this an equation, lets start with how much money he has. Since he bought the motorbike he lost 2,000, then sold it and received 2,500. The 2,000 cancels out but he still has 500. Now that he bought it for 2,200 we subtract 2,200 from 500 and get -1,700. Then finally, he sold it for 2,000 so we add that to -1,700 and get 300. His total profit was $300.

-2,000 + 2,500 = 500
500 - 2,200 = -1,700
-1,700 + 2,000 = 300