Question

eleanor purchased $2568 worth of stock and paid her broker a 0.5% fee. She sold the stock when the stock price increased to 3928 using an online broker that charged $7 per trade. What are her net proceeds?

Answer 1

Answer: $1338.16

Explanation: Total cost of stock= $2568

Total cost of stock including the brokerage $=2568+\frac{0.5}{100}\times {2568}=2580.84$$

Selling price of stock = $3928

Selling price of stock including trading fee=($3928-$7)=$3919

Net Proceeds = Net selling price of stock - Cost Price of stock

Net Proceeds = ($3919 - $2580.84) = $1338.16