Question

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?

Answer

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