Question

A broker charges customers a fixed fee of 150 plus 5.50% of the amount of all investments made. If a customer invests £40000 through the broker what is the total brokerage payable.

Answer 1

£2350

Explanation:

Commission on the £40,000 = 0.055 x £40000 = £2,200

Total brokerage payable = £2,200 + £150 = £2350