Q: James buys $3000 worth of stuff from Amazon. He has to return a TV that cost $700 and a bike that cost $500. He also sells another bike that cost 20% more than the bike he returned for 80% of what he bought it for. He then buys a toaster for $100. How much is he out of pocket for everything?
A: 2020
Explain how we arrive at this answer:
Explanation: The items he returned were valued at $700 + $500 = $1200. So far he is out 3000 - 1200 = 1800 after recouping 1200. An item that is 20% more expensive cost 1 + .2 = 1.2 times as much as the item. So that means the bike he sold cost $500 * 1.2 = $600. He sold it for $600 * .8 = $480. From the bike that he had bought for 600, he was out 600 - 480 = 120. So far he is out 1800 + 120 = 1920. If he also bought a toaster worth 100, he was out 1920 + 100 = 2020.