Question

Melanie purchased 621 shares of Animite Energy at $30.60 apiece. When the price hit $36.23 per share, Melanie sold her holdings in Animite Energy. Melanie’s broker charges $48 for each $1,000 of stock bought or sold. How much profit did Melanie make? a. $1,504.17 b. $22,498.83 c. $3,496.23 d. $1,992.06 Please select the best answer from the choices provided A B C D

Answer 1

a

Step-by-step explanation:

Answer 2

Answer: a. $1,504.17

Step-by-step explanation:

Cost of Acquiring Shares at $30.60 per share.

=$30.60*621

= $19,002.60

Gain from Selling shares at $36.23 per share.

= $36.23*621

= $22,498.83

Brokerage fee at $48 per $1000 of stock bought or sold.

Here we can calculate both figures together being Melanie's cost of buying and selling.

= (19,002.60/1000 + 22,498.83/1000) * 48

= (19.00260 + 22.49883) * 48

= $1992.07

Net Profit from sale of shares.

= 22,498.83 - 19,002.60 - 1992.07

= $1,504.17.

$1,504.17 was Melanie's Profit