Question

Zack buys 40 shares of ebay at the close price of $20.95. his broker charges him 4% of each share as a transaction fee. how much did zack spend in total to buy this stock?

a. $838.00

b. $856.28

c. $871.52

d. $891.46

Answer 1

First, calculate for the total charge for the share which will be calculated by multiplying 1.04 to the close price,
P = (1.04)($20.95)
P = $21.788
Multiplying the calculated value by 40,
P = $21,788 x 40 = $871.52
Thus, the answer to this item is the third choice.