Question

McKenzie buys 240 shares of stock for $12 a share and pays a 1% commission. She sells the stock 3 years later for $18 a share and pays 2% commission. What are her net proceeds?

Answer 1

Answer:

The total amount made would be $1,324.80

Step-by-step explanation:

First we need to find the total amount invested. To find that, we multiply the price of the stock by the amount of shares.

$12 * 240 = $2,880

And then we need to add the commission. So we multiply by 1% and add that to the cost.

$2,880 * 1% = $28.80

$2,880 + $28.80 = $2,908.80

Now we follow the same process for the selling. First multiply the cost by the number of shares.

$18 * 240 = $4,320

This time, we subtract the commission.

$4,320 * 2% = $86.40

$4,320 - $86.20 = $4,233.60

Now we take the amount from the selling and subtract the total investment to see how much we made.

$4,233.60 - $2,908.80 = $1,324.80