Math puzzles and brain teasers are a great way to challenge our thinking and sharpen our logical skills. Today, we have an interesting financial puzzle that might seem simple at first glance, but often tricks even the smartest problem-solvers.
Here’s the question: Anna bought a cow for $100, sold it for $120, bought it back for $150, and finally sold it for $170. Did Anna make a profit or a loss?
Common Mistakes People Make
At first glance, this problem appears to be a straightforward transaction history, but many people get tripped up by these common mistakes:
- Assuming profit or loss based on the highest and lowest numbers: Some people look at the highest number ($170) and the lowest number ($100) and assume the difference is the profit. However, this approach ignores the sequence of transactions.
- Adding up all transactions incorrectly: Another mistake is summing up all amounts exchanged ($100 + $120 + $150 + $170) and trying to derive a result based on total expenditure versus total revenue, rather than focusing on net gains and losses at each step.
- Overcomplicating the problem: Some try to apply complex financial principles like investment return percentages, which aren’t necessary here.
These small miscalculations can lead to incorrect answers, making the puzzle more deceptive than it seems.
Step-by-Step Solution
Now, let’s carefully analyze each transaction and determine whether Anna made a profit or a loss.
Step 1: First Transaction (Buying and Selling)
- Anna buys the cow for $100.
- She then sells it for $120.
- Profit from this transaction = $120 – $100 = $20.
Step 2: Second Transaction (Buying and Selling Again)
- Anna buys back the cow for $150.
- She then sells it for $170.
- Profit from this transaction = $170 – $150 = $20.
Step 3: Calculate Total Profit
- Profit from the first transaction = $20
- Profit from the second transaction = $20
- Total profit = $20 + $20 = $40
Final Answer:
Anna made a total profit of $40.
Why This Puzzle is a Great Brain Teaser
This puzzle is an excellent example of how minor details can lead to incorrect conclusions. It tests not only basic arithmetic skills but also logical thinking. The key to solving it is to focus on net profit from each transaction separately, rather than getting lost in the numbers.
Many people incorrectly think Anna broke even or lost money, because they mistakenly see the $150 repurchase as a “loss” rather than a new transaction leading to another round of profit. By breaking the transactions down step by step, the problem becomes much easier to solve correctly.
Join the Discussion!
Did you get the right answer? Or did you fall for one of the common mistakes? Let us know in the comments below!
Also, if you enjoyed this puzzle, share it with friends and challenge them to solve it too. Logical and mathematical puzzles like this are a great way to keep our brains sharp and improve problem-solving skills.
Want more brain teasers? Stay tuned for more challenges that will test your logic, reasoning, and critical thinking skills!
