Expert: Chanda Walker - 3/27/2009

Question
I had a question in my class about percentage. There was a boatseller who needed some cash, so he sold two of his boats, both for $6000. After he realized he had made 20% on one of the sells and lost 20% on other..did he loose or break even?

Answer
6000 = x*1.20
6000 = y*0.80

Boat one was worth 6000/1.20 = 5000 so he made $1000 profit.
Boat two was worth 6000/0.8 = 7500 so he lost $1500.  In the end, he lost $500.

This problem is my life when it comes to the stock market recently.  Down 50% up 50% but net loss when it is all told!  Bleh.  C'est la vie!

Let me know if I can help further.