Question

Deanna purchased $24,000 worth of stock and paid her broker a 1% broker fee. She sold the stock when it increased to $29,100 three years later and used a discount broker who charged $35 per trade. Compute her net proceeds after the broker fees were taken out

Answer 1

Answer:

Here:

Explanation:

Purchase price of shares = 24000

total purchase cost = price of shares bought + broker fees total purchase cost = 24000 + 0.01*24000 =24240

selling price of shares = 29100

total selling cost = price of shares sold - broker fees total selling cost = 29100 - 35 = 29065

Net proceeeds = total selling cost - total purchase cost Net proceeds = 29065 - 24240 = 4825