Question

Bill purchased stock for $7,000 and paid 1.5% broker fee. He sold it for $6,325 and paid a 0.5% broker fee. Compute his net proceeds.

Answer 1

Answer:

$ 914.625 Loss

Explanation:

Brokers fee increases the cost price of an item.  It can lead to high and selling or buying time.

Brokerage amount = 1 of  (1+1.5 % of 7,000)

=1 +1.5 /100 x 7200

=$1+ 0.015 x 7200

=$7,308

The net selling price will be 6, 325 -( 0.5% x 6, 325)

=6,325 -31.625

=6,293.375

The proceeds will be Purchase price - net selling price

=$ 7,308 - $6,293.375

= ($ 914.625)

A loss of 914.625