Question

You have $1275.25 to buy stock in a company. Your stockbroker charges a brokerage fee of $12.75 for each transaction. Each share is currently worth $25.75. a. How many shares can you buy in one transaction? b. You save $800 to buy more stock. Each share is now worth $31.49. How many shares can you buy in one transaction of $800? c/ Suppose that the shares in parts (a) and (b) anre now worth $28.36 each. What is the total value of the shares?

Answer 1

a. so brokerage fee is minused first so we can find how much we have for the shares
1275.25-12.75=1262.50

amount/cost per share=number of shares
1262.50/25.75=49.02
you can't buy 0.02 share
49 shares can be bought


b. one transaction and 31.49
800-12.75 (transaction)=787.25
787.25/31.49=25 shares can be bought


c. 49+25=74
74 times 28.36=2098.64
total value is $2098.64







ANSWERS
a. 49 shares
b. 25 shares
c. $2098.64

Answer 2

a. x = number of shares

12.75 + 25.75x = 1275.25

x = 1262.5/25.75

x = 49 shares

b.
12.75 + 31.49x = 800

x = 787.25/31.49

x = 25 shares

x=64 shares

Hope this helps!