Question

Eleanor purchased $2,568 worth of stock and paid her broker a 0.5% fee. She sold the stock when the stock price increases to $3,298, using an online broker that charged $7 per trade. What are her net proceeds? A. $755.68 B. $851.40 C. $735.84 D. $710.16

Answer 1

(3298-2568)-(2568(0.005))-7

730-12.84-7

$710.16

Answer 2

Answer:

The correct option is D.

Step-by-step explanation:

It is given that Eleanor purchased $2,568 worth of stock and paid her broker a 0.5% fee.

Total cost price of stock is

$Cost=2568+\frac{0.5}{100}\times 2568$

$Cost=2568+12.84$

$Cost=2580.84$

She sold the stock when the stock price increases to $3,298, using an online broker that charged $7 per trade. So, her net profit is

$Profit=\text{Selling price-Cost-online broker charges}$

$Profit=3298-2580.84-7$

$Profit=710.16$

Eleanor net proceed is $710.16.

Therefore the correct option is D.