The Unfair Arrangement!

Andy and Bill are traveling when they meet Carl. Andy has 5 loaves of bread and Bill has 3; Carl has none and asks to share theirs, promising to pay them 8 gold pieces when they reach the next town.

They agree and divide the bread equally among them. When they reach the next town, Carl offers 5 gold pieces to Andy and 3 to Bill.

“Excuse me,” says Andy. “That’s not equitable.” He proposes another arrangement, which, on consideration, Bill and Carl agree is correct and fair.

How do they divide the 8 gold pieces?

This is fair arrangement of gold distribution! 

Source 

Correcting The Unfair Arrangement!

How unfair the arrangement was?

First we need to know how 8 loaves (5 of Andy & 3 of Bill) are equally distributes among 3.

If each of them is cut into 2 parts then total 16 loaves would be there which can't be divided equally among 3.

Suppose, each of loaves is divided into 3 parts making total 24 loaves available.

Now, Andy makes 15 pieces of his 5 loaves. He eats 8 and gives the remaining 7 to Carl.

Bill makes 9 pieces of his 3 loaves. He eats 8 and gives the remaining 1 to Carl.

This way, Carl too gets 8 pieces and 8 breads are distributed equally among 3.

 
Obviously, Carl should pay 7 gold pieces to Andy for his 7 pieces and 1 gold piece to Bill for the only piece offered by Bill.