smc

Question

Mr. A owns a home worth $10,000. He sells it to Mr. B at a 10% profit based on the worth of the house. Mr. B sells the house back to Mr. A at a 10% loss. Then:

Accepted Answer

Mr. A sells his home for (1 + 10%) 10,000 dollars = 1.1 10,000 dollars = 11,000 dollars to Mr. B. Then, Mr. B sells it at a price of (1-10%) 11,000 dollars = 0.9 11,000 dollars = 9,900 dollars, thus 11,000 - 9,900 = A makes 1100 on the deal.