1951 AHSME Problems/Problem 5

Problem 5

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:

$\mathrm{(A) \ A\ comes\ out\ even  } \qquad$ $\mathrm{(B) \ A\ makes\ 1100\ on\ the\ deal}$ $\qquad \mathrm{(C) \ A\ makes\ 1000\ on\ the\ deal } \qquad$ $\mathrm{(D) \ A\ loses\ 900\ on\ the\ deal }$ $\qquad \mathrm{(E) \ A\ loses\ 1000\ on\ the\ deal }$

Solution

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

See Also

1951 AHSC (ProblemsAnswer KeyResources)
Preceded by
Problem 4
Followed by
Problem 6
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