Question

Amy purchased 100 shares of Monsanto Company for $66.10 per share. Today the stock is selling for $80.45. Assuming a charge of $7.00 to buy and sell, how much did Amy earn if she sold her shares today?

Answer 1

Amy earned $8031 from selling her shares of Monsanto Company today.

Step-by-step explanation:

To calculate Amy's earnings from selling her shares, we need to consider the costs of buying and selling the shares. Amy purchased 100 shares of Monsanto Company at $66.10 per share, which means she spent 100 x $66.10 = $6610. She then sold the shares at $80.45 per share, which means she received 100 x $80.45 = $8045. However, she also incurred charges of $7.00 for each transaction, so her total charges were 2 x $7.00 = $14.00.

To calculate Amy's earnings, we subtract the charges from the selling price: $8045 - $14 = $8031. Therefore, Amy earned $8031 from selling her shares today.

Answer 2

$80.45 - 66.10 = $14.35 profit per share x 100 (for 100 shares) = $1435.00

$1435.00 - $7 sales charge = $1428 in earnings before taxes.