Question

Eleanor purchased $2,568 worth of stock and paid her broker a 0.5% fee. She sold the stock when the stock price increases to $3,298, using an online broker that charged $7 per trade. What are her net proceeds? A. $755.68 B. $851.40 C. $735.84 D. $710.16

Answer 1

(3298-2568)-(2568(0.005))-7

730-12.84-7

$710.16

Answer 2

The correct option is D.

Explanation:

It is given that Eleanor purchased $2,568 worth of stock and paid her broker a 0.5% fee.

Total cost price of stock is

`Cost=2568+(0.5)/(100)* 2568`

`Cost=2568+12.84`

`Cost=2580.84`

She sold the stock when the stock price increases to $3,298, using an online broker that charged $7 per trade. So, her net profit is

`Profit=\text{Selling price-Cost-online broker charges}`

`Profit=3298-2580.84-7`

`Profit=710.16`

Eleanor net proceed is $710.16.

Therefore the correct option is D.