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Dmitrij [34]
3 years ago
8

Leona purchased a $1,000 bond having a quoted price of 99.875. She had to pay a 5.5% brokerage fee (of the selling price). What

was the total cost of the bond (to the nearest whole cent)?
$943.82
$1,064.44
$534.77
$2,054.22
None of these choices are correct.
Mathematics
1 answer:
yan [13]3 years ago
6 0

Answer:

The total cost of the bond is none of the given choices.

Step-by-step explanation:

The selling price of a $1000 bond  =   $99.875

The brokerage fee = 5.5 %

Now, 5.5%  of $99.875 = \frac{5.5}{100} \times 99.875=5.493

So, the brokerage fee = $5.493

Now, to find out the total cost of the bond:

Total Cost  = The selling Price + Brokerage Fee

                    = $99.875 + $5.493

                   =$ 105.368

or, the total price of the $1000 bond is $ 105.368.

Hence,  the total cost of the bond is none of the given choices.

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