Question

Kendra sold 200 shares through her broker on June 8. The price per share was $22.10. The broker charged her a 0.5% commission on the total value. What was Kendra's return on the trade?

Answer 1

Answer: $4397.90

Explanation:

Commission = 0.5% of total value

Price per share = $22.10

Number of shares = 200

Total revenue from shares sale :

$22.10 × 200 = $4420

Commission charged by broker on sales = (0.5% × $4420)

0.005 × $4420 = $22.10

Return on trade = $(4420 - 22.10)

Return on trade = $4397.90

Answer 2

Answer: Kendra's return on the trade was $4,397.9

Explanation:

Hi, to answer this question, first, we have to multiply the price of each share ($22.10) by the number of shares (200).

Mathematically speaking:

22.10 x 200 = $4,420 (Kendra’s return without commission)

Now, we have to multiply Kendra's return without commission by the commission percentage in decimal form:

4,420 x (0.5/100) = $22.1 (commission amount)

Finally, we have to subtract the commission amount to Kendra's return without commission:

4,420-22.1= $4,397.9

Kendra's return on the trade was $4,397.9