I'd say he makes three because I wouldn't give the $100 back to the neighbor. How does he know it's the same $100 bill he originally gave him??
-18 for the jacket -100 giving back to the neighboring owner. ----- -118 The way I understand the question, the exchange of $100 real money for $100 fake money is irrelevant in determining how much the owner lost. The young man spent $100 for the jacket so the young man lost $79 in that exchange. The owner didn't gain or lose anything in the fake money exchange. The answer is different if money "lost" somehow includes the $3 profit the owner should have made from the jacket. However, I don't consider that to be money "lost" since the owner didn't have it to begin with.
people mess themselves up by letting the story complicate things. all you need to know is he had 2 transactions. an $18 loss on the jacket with a $21 dollar gain from the customer for a profit of $3. and then a $100 loss with the neighbor. he's now $97 in the hole.
He starts -18 (cost of Jacket to him) guy buys with $100 So now he is up $82 (-18 +100= 82) He goes to get change. this transaction cancels out initially because he gives $100 and gets $100 He give the customer $79 in change So he is now at +$3 (82-79=3) Now he has to give the other store owner the 100 back So in all he is down $97 (-100 +3=-97) What he should have done was told the customer he didn't have change and made him go next door. Then he'd be up 3 and the neighbor would be down $100.
it says that the customer gave him a $100 bill, and then he exchanges $100 from the neighbor? -$18 +$100 -$79 -$100
Yeah, I think that since the initial question said he got one dollar from the neighbor I assumed he had to borrow it (he wasn't going to trade $1 and $1) and when the question was corrected I stuck with that same assumption.
step...C........sA.................sB 1)......[C100]..J=18 2)......J.........[C100]-18 3)..... J.........100-18...........[C100]-100 4)......J+79....(100-79)-18....[C100]-100 5)......J+79....3-100+[C100] -------------------------------------- T)......J+79.....-97+[C100] Totals- Customer= Jacket+$79 Store owner A= -$97+ counterfeit 100 Since he holds the counterfeit bill last, he eats the 100 So he lost $197. If the counterfeit was real, he would've made 3 bucks. That could've been a shortcut to this, but it can be used to check this answer.
But the [C100] is worth $0 so you can't add it in as -100 (as you did in your summary). That is taken care of in step : 5)......J+79....3-100+[C100], by giving the the other guy his $100 back. he gave sB 100 (that is the -100) and got back $0 not another -100. So it is still a $97 loss. In effect you are counting him losing the $100 twice.
I guess everyone is piling on w/ the same answers now. Yet ANOTHER way to look at it: Let's say you're the counterfeiter. You basically stole a jacket worth $18 and got $79 real dollars from the owner. The neighbor never took any loss, the owner did. So in total he's out $97.
I guess it's $179 He takes a $100 hit off of the counterfeit $100 to the neighbor. He gives $79 back to the young man for the difference of 100 and 21. So now he's $179 in the hole. He kept the $21 in change(from the fake $100) so that cancels out losing the jacket($21) so he lost nothing from the jacket. I dont know if thats correct. Thats what I came up with on 2 hours of sleep...Damn stomach virus
He lost $79 (to the next store owner) + $18 (cost of the jacket) = $97 total or $100 if you count the $3 loss of profit.
He doesn't take a $100 hit off of the counterfeit bill to the neighbor. The neighbor had given him change for the bad bill earlier. The $100 "hit" just cancels out the money that the neighbor gave him originally. That transaction is completely inconsequential. So...like many of the others have said. He's out $18 for the jacket, plus another $79 given to the shady customer for a total of $97.
He's not out the $18 for the jacket. The price was at $21 which he got that money back out of the $100 he got from the neighbor on the trade. Store owner starts with $21 (jacket). +$21 Gets $100(fake). + $121. Gives $79 to young man so he has $42. $121-$79= +$42 He gives $21(jacket) to young man so he's still $21 up. +$21 Then has to pay neighbor $100 for the fake. 21-100= -$79 That leaves $79 in the hole. Thats what I came up with after a short nap.
