Question

Alex buys 30 shares of Wal-Mart at the close price of $48.80. His broker charges him 3% of each share as a transaction fee. How much did Alex spend in total to buy this stock?

A. $1528.32
B. $1486.48
C. 1464.00
D. 1507.92

Answer 1

3% of 48.80 is 1.464
$1.464 times 30 since its for each share is $43.92
Then what i think is...30 times 48.80 =1464
then add 43.92 to 1464 to get 1507.92

Answer 2

D. $1507.92

Explanation:

We have been given that Alex buys 30 shares of Wal-Mart at the close price of $48.80. His broker charges him 3% of each share as a transaction fee.

Let us find the cost of purchasing 30 shares by multiplying 30 by $48.80.

`\text{Purchasing cost of 30 shares}=\$48.80* 30`

`\text{Purchasing cost of 30 shares}=\$1464`

Now, we need to find 3% of $1464 to find broker's fees.

`\text{Broker's fees}=(3)/(100)* \$1464`

`\text{Broker's fees}=0.03* \$1464`

`\text{Broker's fees}=\$43.92`

`\text{Total cost to buy the stock}=\$1464+\$43.92`

`\text{Total cost to buy the stock}=\$1507.92`

Therefore, the total cost to buy the stock is $1507.92 and option D is the correct choice.