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.

(In reply to he gains by Daniel)

You are counting the original cost of the bike twice. He gets -20 + (30-40) + (50-60) or -40 for the 40 dollar bike.

Posted by Gamer on 2003-08-04 06:43:21