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Henry earns $5,000 per month and has decided to invest 30% of his monthly income into a mutual fund. The mutual fund charges a brokerage fee of 12% of the amount invested.

- $ 2,160
- $ 17, 910
- $ 4, 320
- $ 5, 750
- $ 4, 960
- $ 54, 000
- $ 42, 000
- $ 6, 480
- $ 15, 840
- $ 84, 000

Henry earns $5,000 per month and has decided to invest 30% of his monthly income into-example-1

2 Answers

5 votes

Answer:

the answer is $15,840.

Explanation:

To find the answer, we need to follow the steps below:

Calculate the amount Henry will invest each month:

Amount to be invested = 30% * $5,000 = $1,500

Calculate the brokerage fee Henry will pay:

Brokerage fee = 12% * $1,500 = $180

Calculate the net amount Henry will invest:

Net amount invested = $1,500 - $180 = $1,320

Calculate the total amount Henry will invest in one year:

Total amount invested = $1,320 * 12 = $15,840

Therefore, the answer is $15,840.

User Claudio Redi
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4 votes

1. Henry's brokerage fees if his income doubles are $360.

2. The amount of income Henry uses for everything else is $2,000.

3. Henry pays $4,320 in brokerage fees per year.

4. Henry invests $31,680 in the mutual fund per year after fees.

5. Henry's brokerage fees if his income triples are $540.

Let's break down each part of the question:

1. Henry's brokerage fees if his income doubles:

Henry's monthly income is $5,000. If his income doubles, it becomes $5,000 * 2 = $10,000.

The amount to be invested in the mutual fund is 30% of his monthly income, so for the doubled income:

0.30×$10,000=$3,000

The brokerage fee is 12% of the amount invested:

0.12×$3,000=$360

Therefore, Henry's brokerage fees if his income doubles are $360.

2. The amount of income Henry uses for everything else:

If Henry invests 30% of his monthly income, the remaining amount for everything else is:

$5,000−$3,000=$2,000

Therefore, the amount of income Henry uses for everything else is $2,000.

3. The amount of brokerage fees Henry pays per year:

The monthly brokerage fees are $360, and there are 12 months in a year:

$360×12=$4,320

Therefore, Henry pays $4,320 in brokerage fees per year.

4. The amount of money Henry invests after fees per year:

Henry invests $3,000 per month, and the annual investment is

$3,000×12=$36,000.

After deducting the annual brokerage fees ($4,320):

$36,000−$4,320=$31,680

Therefore, Henry invests $31,680 in the mutual fund per year after fees.

5. Henry's brokerage fees if his income triples:

If Henry's income triples, it becomes

$5,000×3=$15,000.

The amount to be invested in the mutual fund is 30% of his monthly income:

0.30×$15,000=$4,500

The brokerage fee is 12% of the amount invested:

0.12×$4,500=$540

Therefore, Henry's brokerage fees if his income triples are $540.

User MathuSum Mut
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