Question

A stock trading company charges a commission of $10 per trade plus $0.025 per dollar value of stock traded. If your commission is $140 , what was the value of the stock you traded?

Answer 1

$5200

Explanation:

Let C = total commission

and d = dollar value of stock

Then

C = 10 + 0.025d

Let C =140

140 = 10 + 0.025d Subtract 10 from each side

130 = 0.025d Divide each side by 0.025

d = $5200

The value of the stock was $5200.

Check:

140 = 10 + 0.025 × 5200

140 = 10 + 130

140 = 140

Answer 2

Value of the stock traded was $5200.

Explanation:

In this question it is given that trading company charges commission of $10 per trade or transaction plus $.025 per dollar value of stock.We have to calculate the value of stock we traded if total commission (commission on trade value + commission on trade) is $140.

Let the value of stock traded was $x.

Then commission on value of the stock = x×.025

Commission on transaction = $10

Total commission = 140 = ( .025x + 10)

⇒.025x = 140-10 = 130

x = 130÷.025 = $5200

So the value of the stock = $5200