Question

@sinusoidal @djaydeej88

Alex buys 30 shares of Wal-Mart at the close price of $48.80. His broker charges him 3% of each share as a transaction fee. How much did Alex spend in total to buy this stock?

A. $1464.00
B. $1486.48
C. $1528.32
D. $1507.92

Answer 1

It's just asking you to multiply the shares by the price, then multiply that new number by 3% and add it to the previous total

Answer 2

the broker is adding 3% of the total cost of the shares to the final price

Answer 3

get it?

Answer 4

43.92

Answer 5

so they're bbuying 30 shares at 48.80

Answer 6

that will cost 1464 for the shares

Answer 7

im confused

Answer 8

The shares cost $48.80 each right? and they're purchasing 30 of them

Answer 9

so the cost of the shares will be 1464, before we consider the brokers fees

Answer 10

yes i think

Answer 11

So if you multiply 1464 by 0.03, that gives you 43.92 in fees

Answer 12

because that is 3% of the cost of the shares

Answer 13

Now if you add the fees to the cost of the shares, you will get 1507.92

Answer 14

It's similar to finding out how much tax you pay on some transaction. You take a percentage of the total then add it back in

Answer 15

o so all i needed to do was add the fees