Question

An investor purchased 60 shares of stock in a computer company at $61.83 per share. After holding the stock for two years, the investor sold all

of the stocks for a total of $3,992.10. If the investor pays a 1.75% brokerage fee, what is the total gain or loss?
The total gain is $282.30.
O The total loss is $282.30.
O The total gain is $212.44.
O The total loss is $212.44.

Answer 1

The total gain is $212.44

Explanation:

First, we need to calculate the total cost of purchasing 60 shares of stock:

60 shares * $61.83/share = $3,709.80

Next, we need to calculate the total amount received from selling the 60 shares:

$3,992.10

We need to subtract the brokerage fee, which is 1.75% of the total amount received: 0.0175 * $3,992.10 = $69.81

The total amount received after paying the brokerage fee is:

$3,992.10 - $69.81 = $3,922.29

The gain or loss is the difference between the total amount received and the total cost of purchasing the stock:

$3,922.29 - $3,709.80 = $212.49.