When combining both transactions, the total profit is calculated by adding the results of each cycle. The first transaction produced a profit of $200, and the second transaction also produced a profit of $200. Adding them together results in a total profit of $400.
200+200=400200 + 200 = 400
This confirms that the final answer is $400. The key insight is that profit should be tracked per transaction, not mixed across steps. Once this is understood, the puzzle becomes much easier to solve and no longer feels misleading or complicated.
Why People Get Confused
One reason this puzzle went viral is because it plays on how people mentally track money. When multiple buying and selling steps are involved, it is easy to lose track of what is profit, what is cost, and what is already accounted for. The story format also encourages overthinking, which leads many people to incorrect conclusions.
Another factor is that people often try to calculate everything in one combined equation instead of breaking it into stages. This creates confusion and sometimes leads to answers like $200, $300, or even incorrect net loss interpretations. In reality, structured step-by-step thinking eliminates the confusion entirely.
