Question

Mary Cooper just purchased 100 shares in the All-American Fidelity Fund. The purchase cost for each share was $20. If this fund charges a 5 percent load, what is the total amount of commission she will pay the investment company? Group of answer choices

a. $2,000
b. $100
c. $1,000
d. $2,100
e. It is impossible to calculate Ms. Cooper's total investment with this information.

Answer 1

total amount of commission = $100

so correct option is b. $100

Step-by-step explanation:

given data

purchased = 100 shares

purchase cost = $20

charges = 5 percent = 0.05

to find out

total amount of commission

solution

we get here total amount of commission that is express as

total amount of commission = purchased × purchase cost × charge ........1

put here value , we will get total amount of commission

total amount of commission = 100 × $20 × 0.05

total amount of commission = $100

so correct option is b. $100