Question

Ben’s broker charges a commission of $125 for every $1,000 of stock bought or sold. Ben bought 442 shares of Xyx Motors when the share price was $15.67, and sold them when the share price was $23.14. How much profit did Ben make? a. $10,227.88 b. $8,083.62 c. $1,157.48 d. $3,301.74 Please select the best answer from the choices provided A B C D

Answer 1

c

Explanation:

took test

Answer 2

The correct choice is C) $1,157.48

Explanation:

Consider the provided information.

Ben’s broker charges a commission of $125 for every $1,000 of stock bought or sold.

That means broker charges $0.125 for every stock.

Ben bought 442 shares of Xyx Motors when the share price was $15.67.

The broker's charge for buying 442 shares:

`0.125* 442* 15.67=865.7675`

Ben sold 442 shares of Xyx Motors when the share price was $23.14,

The broker's charge for selling 442 shares:

`0.125* 442* 23.14=1278.485`

Profit earn by Ben is:
`442(\$23.14-\$15.67)=442(\$7.47)=\$3,301.74`

The total profit earned by Ben is: Profit - Broker's charges

`\$3,301.74-(\$865.7675+\$1278.485)=\$3,301.74-\$2144.2525=\$1,157.48`

Hence, the correct choice is C) $1,157.48