Question

Darlene purchases 20,000 worth of stock on her brokers advice and pays her broker a 1.5% broker fee darlene purchases 20,000 worth of stock on your brokers advice and pays her broker a 1.5% broker freeshe sells her stock when it increases to $28,600.02 years later and uses a discount broker who charges $21 per trade compute Darlenes net proceeds after the broker fees are taken out

Answer 1

Darlene's net proceeds after the broker fees are taken out is $8,279.

Explanation:

From the question, the following can be obtained:

Basic cost of purchase of the stock = $20,000

Broker fee related to purchase = Basic cost of purchase of the stock * 1.5% = $20,000 * 1.5% = 300

Total cost of purchase of the stock = Basic cost of purchase of the stock + Broker fee related to purchase = $20,000 + 300 = $20,300

Selling price = $28,600

Broker fees related sales = 21

The net proceed can therefore be calculated as follows:

Net proceeds = Selling price - Broker fees related sales - Total cost of purchase of the stock = $28,600 - $21 - $20,300 = $8,279

Therefore, Darlene's net proceeds after the broker fees are taken out is $8,279.