Mike wanted to buy a bike, and he found one he liked at $20, so he bought it. The next day, a friend saw it and offered $30 dollars for it so Mike agreed. He later bought it back for $40. Again someone saw it and offered $50 and again Mike sold it. Mike finally rebought the bike for good for $60. Mike then took it to a bike show where a man told him the bike was worth $40.

Deciding to keep it, did Mike gain or lose money on the transactions? Count the bikes worth in the problem.

Mike bought the bike three times - $20, $40 and $60 for a total of $120.

He sold it two times for $30 and $50 - a total of $80.

All in all he lost $40 and gained a bike. Since it was valued at $40, Mike broke even. (Why is that difficulty 3??)

Posted by Lewis on 2003-07-26 08:36:36