Question

Ernesto Montenegro purchased twelve $1,000 bonds having a quoted price of 100.75. He had to pay a 6% brokerage fee (of the selling price). What was the total cost of thebonds (to the nearest whole cent)?$13,005.97$12,124.76$12,432.88$12.815.40None of these choices are correct.

Answer 1

Given that the bond price of 12 $1,000 bonds is $100.75.

`100.75*12=1209.`

With a 6% brokerage fee

Find the total cost to the nearest cent

First, we calculate the 6% brokerage fee,

6/100 × 100.75

= 0.06 x 1

Total cost therefore is the sum of brokerage fee and the cost of bond

= $6.045 + $100.75

= $106.795

To the nearest cent = $106.8