Question

Maggie bought 20 shares of Google at the close price of $472.68. She bought

20 more shares a year later at the price of $491.32. Two years later, she sold
all of her shares at the price of $512.25. Her broker charges $50 for each
transaction. After all of these transactions, how much money did Maggie
make?
A. $1,160.00
B. $318.60
C. $1,060.00
D. $20,440.00

Answer 1

C. $1,060

Step-by-step explanation:

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Answer 2

C. $1,060

Step-by-step explanation:

First transaction

20 shares of Google at close price of $472.68

= 20 × $472.68

= $9,453.6

Second transaction, a year later;

she bought 20 shares at close price of $491.32

= 20 × $491.32

= $9,826.4

Third transaction. Two years later, she sold all her shares;

In total 3 transactions, Maggie's broker charge will be;

$50 × 3 = $150

The last transaction will get($512.25 per share for 20 + 20 = 40 shares)

40 × $512.25 = $20,490

Maggie will get $20,490 less $150 due to the brokerage's charge.

$20,490 - $150 = $20,340

To get how much Maggie makes,

= Total value of third transaction (Sales of shares) - (Total value of first transaction + Total value of Second transaction)

= $20,340 - ($9,453.6 + $9,826.4)

= $1,060