Question

Deanna purchased $24000 worth of stock and paid her broker a 1% broker fee. she sold the stock when it increased to $29,100 3 years later and used a discount broker who charged $ 35 per trade.

Answer 1

To solve this problem, we need to first calculate the amount of money Deanna paid her broker for the purchase of the stock.

1% of $24,000 is 0.01 x $24,000 = $240

So Deanna paid her broker a fee of $240.

Next, we need to calculate the total cost of buying and selling the stock.

Total cost = cost of buying + cost of selling

The cost of buying is the amount Deanna paid for the stock plus the broker fee:

Cost of buying = $24,000 + $240 = $24,240

The cost of selling is the amount Deanna received for the stock minus the broker fee:

Cost of selling = $29,100 - $35 = $29,065

Finally, we can calculate Deanna's profit:

Profit = Selling price - Total cost

Profit = $29,065 - $24,240 = $4,825

Therefore, Deanna's profit from the sale of the stock is $4,825.