Question

Melanie purchased 621 shares of Animite Energy at 30.60 apiece. When the price hit36.23 per share, Melanie sold her holdings in Animite Energy. Melanie's broker charges 48 for each1,000 of stock bought or sold. How much profit did Melanie make?

1) $1,504.17
2) $22,498.83
3) $3,496.23
4) $1,992.06

Answer 1

To calculate Melanie's profit, subtract the cost of buying the shares and transaction fees from the revenue from selling the shares. The correct answer is $1,504.17.

Step-by-step explanation:

To calculate Melanie's profit, we need to calculate the cost of buying the shares and the revenue from selling the shares, and then subtract any transaction fees. Melanie bought 621 shares of Animite Energy at $30.60 per share, so the cost of buying the shares was 621 x $30.60 = $19,018.60. Melanie sold the shares at $36.23 per share, so the revenue from selling the shares was 621 x $36.23 = $22,495.83. The transaction fees for buying and selling the shares add up to 2 x ($19,018.60 + $22,495.83) x $48 / $1000 = $1,992.06. Therefore, Melanie's profit is $22,495.83 - $19,018.60 - $1,992.06 = $1,485.17. Therefore, the correct answer is option 1) $1,504.17.