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hey this is preshtalwalker this is a problem that many people cannot correctly solve a man buys a horse for sixty dollars he sells the horse for seventy dollars he then buys the horse back for eighty dollars and he sells the horse again for ninety dollars in the end how much money did the man make or lose or did he break even give this problem a try and when youre ready keep watching the video for the solution the short answer is the man made a profit of twenty dollars he made ten dollars each of the two times he sold the horse this is a total of twenty dollars profit we can also see this by tracking his net cash position the first transaction he buys the horse for sixty dollars so hes out sixty dollars this is negative sixty dollars relative to a starting point he sells the horse for 70 so he then gets plus 70 which results in a cash position of plus 10 from where he started he then buys a horse back for eighty dollars so he needs to spend eighty dollars which is negative eighty dol