Question

8. You sold 1000 shares of Ibex for $10.50 per share. Your broker charges you a

commission of $3.25 per thousand dollars of stock bought or sold. How much
money will be credited to your account when you sell? (Remember, commissions
are subtracted out of your transaction.)

Answer 1

Amount credit in account = $10,465.875

Explanation:

Given:

Number of shares = 1,000

Selling price of each share = $10.50

Broker charges = $3.25 per 1,000 dollar

Find:

Amount credit in account

Computation:

Total sales value = Number of shares x Selling price of each share

Total sales value = 1,000 x 10.50

Total sales value = $10,500

Total broker charges = 10,500 [3.25/1000]

Total broker charges = $34.125

Amount credit in account = Total sales value - Total broker charges

Amount credit in account = 10,500 - 34.125

Amount credit in account = $10,465.875