Question

Meghan purchases $41,655 worth of stock on her broker's advice and pays her broker a 1.5% broker fee. She sells it when it increases to $47,300, months later, and uses de discount broker who charges $19 per trade. Compute her net proceeds after the broker fees are taken out. Round to the nearest cent.

Answer 1

Explanation:

1. Calculate the broker fee on the purchase:

$41,655 * 1.5% = $624.83

2. Calculate the broker fee on the sale:

$47,300 * 1.5% = $709.50

3. Subtract the broker fees from the sale price:

$47,300 - $709.50 = $46,590.50

4. Calculate the number of trades Meghan made:

Since Meghan used a discount broker who charges $19 per trade, we need to find the number of trades she made. However, the question does not provide that information, so we cannot calculate the exact number of trades.

5. Calculate the total broker fees for trades:

Number of trades * $19

6. Subtract the total broker fees for trades from the amount calculated in step 3:

$46,590.50 - total broker fees for trades

The exact net proceeds after broker fees cannot be determined without the number of trades Meghan made.