1. A classic problem. Anna bought a horse for $50 and sold it

for $60. She then bought the horse back for $70 and sold it

again for $80. What do you think was the financial outcome

of these transactions? The woman ...

() Lost $10

() Earned $20

() Lost $20

() Came out even

() Earned $10

() Other (Describe.)

For this case we have the following situation:

Initial capital: $50

Sale for $60: Then he made a profit of $10. ($60 - $50 = $10)

Initial capital 2: $60 + $10 (Invest additional $10)

Sale for $ 80: Then he made a profit of $ 10. ($80 - $70 = $10)

Thus, it can be seen that during the transactions he obtained a profit of $10 + $10 = $20

Answer:

Option B

Earned $20