Sell It Twice!
A man decides to buy a nice horse. He pays $600 for it and he is very content with this strong animal. After a year the value of the horse has increased to $700 and he decides to sell the horse. But already a few days later he regrets his decision to sell the beautiful horse and he buys it again. Unfortunately he has to pay $800 to get it back so he loses $100. After another year of owning the horse he finally decides to sell the horse for $900. What is the overall profit the man makes?
If someone says to you "I"ll bet you $1 that if you give me $2 I will give you $3 in return" would this be a good bet for you to accept?"