Question

Connor bought 30 shares of eBay at $20.95. A year later, he bought 20 more shares at $26.75. He later sold all of his shares at the price of $35.25. Connors broker charges him 3% of each share as a transaction fee. After all of his transactions, how much money did Connor make?

A. $525.11
B. $493.37
C. $511.21
D. $515.53

Answer 1

 (35.25*50-20.95*30-26.75*20) - ((20.95*30)+(26.75*20*)+(35.25*50))*.03 = 599-87.78 = $511.21

Answer 2

Answer: Option 'C' is correct.

Explanation:

Since we have given that

Number of shares of eBay bought by Connor = 30

Cost of each share = $20.95

Number of shares he bought more = 20

Cost of each share = $26.75

Rate of charges of broker's commission =- 3% on each share

Selling price of each share = $35.25

According to question,

Total amount he paid to bought the shares

`30* 20.95+20* 26.75\\\\=\$1163.5`

Amount he was charged for commison is given by

`1163.5* 0.03\\\\=\$34.905`

Total amount he paid including commission is given by

`\$1163.5+\$34.405\\\\=\41198.405`

similarly, he sold his shares , amount he received ,

`35.25* 50\\\\=\$1762.5`

Again he was charged commission which is given by

`1762.5* 0.03\\\\=\$52.875`

Total amount he received on selling the shares is given by

`\$1762.5-\$52.875\\\\=\$1709.625`

After all of his transactions, Connor makes

`\$1709.625-\$1198.405\\\\=\$511.22`

Hence, he made $511.21.

Therefore, Option 'C' is correct.