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 basic by Andre)

I don't understand how he would lose at least 20 if he had not kept the bike. The original 20 was already included in your calculation. The way I see it, he is down by 40 but the bike is currently worth 40 so he's even.

Posted by Chan Wah on 2003-08-04 15:37:58