Question

Imene buys c shares of common stock that cost d dollars per share. with a flat fee of 9.95. two years later she sells the stock for s dollars per share. and she pays a commission of 1% of the total sales price

Answer 1

The answer deals with the calculation of the total profit or loss incurred by Imene from buying and then selling stocks, involving several steps from initial cost calculation to final profit computation after fees and commissions.

Step-by-step explanation:

The question involves Imene engaging in the purchase and later sale of stocks, which falls under the category of financial mathematics. Here is how you would calculate the overall profit or loss from these transactions:

1. Calculate the total initial cost of purchasing the shares:
2. Total cost of buying = (c shares × d dollars/share) + 9.95 flat fee
3. Determine the total revenue from selling the shares:
4. Total revenue from sale = c shares × s dollars/share
5. Calculate the commission fee for selling the shares:
6. Commission fee = 1% of Total revenue from sale
7. Compute the total net revenue after commission:
8. Net revenue after commission = Total revenue from sale - Commission fee
9. Finally, calculate the total profit or loss:
10. Total profit or loss = Net revenue after commission - Total cost of buying