Question

A broker charges customers a fixed fee of £150 plus 5.50% of the amount of all investments made. If a customer invests £40 000 through the broker, what is the total brokerage payable?
(10 Marks)

Answer 1

Answer:

Total payable brokerage = £2350

Step-by-step explanation:

Given that:

Fixed fee charged by broker = £150

Percent of fee charged = 5.50%

Amount invested by customer = £40,000

Fee charged = $\frac{5.50}{100}*40000$

Fee charged = 5.50 * 400 = £2200

Total brokerage payable = £150 + £2200 = £2350

Hence,

Total payable brokerage = £2350