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Does Anyone Understand This ?


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bit off-topic but, i just don't get it!

• A bat and a ball cost £1.10 in total. The bat costs £1 more than the ball. How many pence does the ball cost?

The answer isn't 10 apparently.

http://www.thisismoney.co.uk/small-busines...2&in_page_id=10

Surely the ball is worth 5p and the bat £1.05?

Unless of course it is one of thosebat n' balls with the elastic string in which case it could be £1.04 for bat 4p for ball and 2p for string?

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The answer isn't 10 apparently.

The key thing with this question is that the bat costs £1 MORE than the ball - the question isn't saying that the bat costs £1.

The answer is that the bat costs £1.05, and the ball costs 5p. Total = £1.10. :D

EDIT: Looks like a load of other clever-cloggs have got there before me !

Edited by Warwickshire Lad
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The key thing with this question is that the bat costs £1 MORE than the ball - the question isn't saying that the bat costs £1.

The answer is that the bat costs £1.05, and the ball costs 5p.  Total = £1.10.  :D

EDIT: Looks like a load of other clever-cloggs have got there before me !

...but off course you only have to but 5p down and get the rest on an IO mortgage and then in 1 year it will be worth twice as much and you could then MEW and get yourself a whole bunch of bats and balls which could then be rented out to those negheads that missed the bat and ball boat...

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Suppose you bought a house for £100k with £10k down and an interest only mortgage at 5% per year. One year later, the price goes up by 20%. Another year and the price goes down by 15%. You panic and sell it.

Also assume buying cost was £500, selling £1500 and monthly rental income net of all expenses (but not mortgage payments) was £4000/year. Would you have been better or worse off not buying?

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bit off-topic but, i just don't get it!

• A bat and a ball cost £1.10 in total. The bat costs £1 more than the ball. How many pence does the ball cost?

The answer isn't 10 apparently.

http://www.thisismoney.co.uk/small-busines...2&in_page_id=10

I'd say its a case of buy while you can, there is going to be a national shortage of bats & balls leading to a permanent massive rise in prices.

BTB's (buy to Bat) will hoover up all the low priced bats & balls to rent out to players at extortionate prices

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Suppose you bought a house for £100k with £10k down and an interest only mortgage at 5% per year.   One year later, the price goes up by 20%.    Another year and the price goes down by 15%.  You panic and sell it.

Also assume buying cost was £500, selling £1500 and monthly rental income net of all expenses (but not mortgage payments) was £4000/year.  Would you have been better or worse off not buying?

Interesting question.

Assuming 25 yr repayment, and ignoring the opportunity cost of investing the money, then you would walk away with a loss of £1k on your intial £10k. HPI just covers your buy/sell costs, but you lose out because the rent doesn't cover the mortgage.

Maybe the benefit of such a painful lesson could be factored in too, but I don't know how to model that! :rolleyes:

So the answer is: better off not buying.

Edited by anto
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Interesting question.

Assuming 25 yr repayment, and ignoring the opportunity cost of investing the money, then you would walk away with a loss of £1k on your intial £10k.  HPI just covers your buy/sell costs, but you lose out because the rent doesn't cover the mortgage.

Maybe the benefit of such a painful lesson could be factored in too, but I don't know how to model that!  :rolleyes:

So the answer is: better off not buying.

Correct. You would have lost £1k, plus the interest on £10k for two years. So at 4% interest per year, you would be worse off by £1,800, i.e. an annual loss of about 9%.

My point was, many people think a % gain followed by a the same % loss is no change, in reality it's a net loss. For example if you make 20% on 100k, you have 120k. If you then lose 20% of 120k, you are left with 96k.

And leverage makes it worse. I wonder how many BTL investors will find out the hard way.

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So, did i get the answers right to the other 2 questions?

All three questions:

• A bat and a ball cost £1.10 in total. The bat costs £1 more than the ball. How many pence does the ball cost? 5p?

• If it takes five machines, five minutes to make five widgets, how many minutes would it take 100 machines to make 100 widgets? 5 minutes?

• In a lake there is a patch of lily pads. Every day, the patch doubles in size. If it takes 48 days for the patch to cover the entire lake, how many days would it take for the patch to cover half the lake? 47 days?

Am I right? Would I get the job?

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Lets go for quadratic expressions

X +X +Y = Z

Z = 1.10 (total cost)

Y = 1 (additional cost of bat)

X = Price of Ball or Bat

Simplify

2X + 1 = 1.10

2X = 1.10 - 1

2X = 0.10

X = 0.5

Do you english people not go to school.

Maybe why scotland gets beeter funding so i can have 3 degrees ;-))

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This is funny - last night i was working out exactly the same types of questions in terms of percentage increase and decreases.

Had to run one through to make sure i wasnt crazy.

Someone said their hous had gone up by 10% but then it had fell by 10% so he said he had broke even.

I said he was losing instantly without thinking as the 100%x1.1 is higher than the original 100% so he'd be losing 10% of 110% which is 11% hence 99% he finishes with.

Had to come home to check it though !

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Lets go for quadratic expressions

X +X +Y = Z

Z = 1.10 (total cost)

Y = 1 (additional cost of bat)

X = Price of Ball or Bat

Simplify

2X + 1 = 1.10

2X = 1.10 - 1

2X = 0.10

X = 0.5

Do you english people not go to school.

Maybe why scotland gets beeter funding so i can have 3 degrees ;-))

Ask for your money back...! That isn't a quadratic equation - it is a first order polynomial equation

Quadratics, as any English educated person would know, are second order polynomial equations, of the form

Ax^2 + Bx + C = 0

and have two solutions. Quadratic means "square" - referring to the second order bit (Ax^2)

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Ask for your money back...!  That isn't a quadratic equation - it is a first order polynomial equation

Quadratics, as any English educated person would know, are second order polynomial equations, of the form

Ax^2 + Bx + C = 0

and have two solutions.  Quadratic means "square" - referring to the second order bit (Ax^2)

Caan we all stop Maths debating now! :blink:

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