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. How much money will Maggie receive after her last transaction?
A)20,530
B)20,490
C)20,340
D)19,590

Answer 1

the key is "how much money will she receive" not "how much she will profit" so we only need to consider the final amount received minus any brokerage fees

40 shares sold at 512.25 each, minus three brokerage fees of $50 each (once each time she bought or sold something) gives us

40*512.25 - 3(50)