A horse worth $900 is sold by A to B at 10% loss and B sells the horse back to A at 10% profit, then the result is---
A.A loss $9
B.B loss $9
C.neither loss nor gain
D.none
The answer in the book in the answer key is (a) but I keep getting 171 as the loss of A. Some of my friends say that it is the option (b). I am totally confused now.
If anybody could help...
A has a horse worth $900 initially.
When A goes through the various transactions he ends up with the same horse now worth 891. $900-891 = 9.00
I see how you came up with $171. You're confusing loss and gain with the worth of the horse. You're mixing apples and oranges.
Focus on the worth. The horse was worth $900 to start and $891 at the end and that difference is $9.00. By the way, on the 2nd case, A didn't lose $81.00. B made a profit of $81.00. He should be in the horse trading business.
900 * 0.9 * 1.1 = 891
so, a loss of $9
A has the horse at $900.
A sells the horse to B at 10% loss so 900 x 0.1 = 90 and 900-90 = $810.
Now B sells the horse with a 10% profit or 810 x 0.1 = 81 and 81 + 810 = $891.
The loss to A is 900-891 - 9.00.
I don't know how you come up with $171. Are you converting the percent to decimal first.
I hit the - key instead of the = key. That line should be
The loss to A is 900-891 = 9.00.
What I think I am doing wrong is
1st case--
A sells it to B at 10%loss i.e. at 810
Now he has lost 90$ here
2nd case
B sells the horse worth $810 at 10% profit i.e around $891
So A has lost almost $81 here as well.
So, how could A have lost just $9???
The initial CP of the horse (for A) is $900
And he buys it next time at $891. How has he lost $9 here?
To determine the correct answer to this problem, let's break it down step by step:
1. A sells the horse to B at a 10% loss. This means that A sells the horse for 90% of its original value. Since the horse is worth $900, 90% of $900 is $900 * 0.90 = $810. So, A sells the horse to B for $810.
2. B sells the horse back to A at a 10% profit. This means that B sells the horse for 110% of its purchase price. The purchase price for B was $810, so 110% of $810 is $810 * 1.10 = $891. This is the amount for which B sells the horse back to A.
Now, let's compare the selling price in each transaction:
- A originally sold the horse for $810 to B.
- B sells the horse back to A for $891.
We can see that A ends up paying more to repurchase the horse than what they sold it for initially. Therefore, A incurs a loss in this transaction.
To calculate the loss, we need to find the difference between the initial selling price and the repurchase price. The loss for A can be calculated as follows:
Loss for A = Initial selling price - Repurchase price
Loss for A = $810 - $891
Loss for A = -$81 (negative value indicates a loss)
Based on this calculation, it seems that the answer should indeed be (b) A loss of $81, not A loss of $9 as stated in the answer key.
It's essential to carefully examine the problem and calculations to ensure accurate answers.