Asked by b

The buying and selling commission schedule shown below is from a well-known online discount brokerage firm.?

Taking into consideration the buying and selling commissions in the schedule find annual rate of interest earned by each investment?

Transaction Size Commission Rate
$0-$2,500 $19+ 1.6% of principal
$2,501-$6,000 $44 + 0.6% of principal
$6,001-$22,000 $62 + 0.3% of principal
$22,001-$50,000 $84 + 0.2% of principal
$50,001-$500,000 $134 + 0.1% of principal
$500,001+ $234+ 0.08% of principal

An investor purchases 500 shares at $14.20 a share, holds the stock for 39 weeks, and then sells the stock for $16.84 a share.
Answered by drwls
What you have listed are investment commissions.

The total charge was in this case $7200 plus $62 + 21.30. That is 7283.39. The stock was sold for $16.84 a share, or $8420.00 There would be selling commission of %62 + 25.26 = 87.26

The net return on the buying and selling of the stock would be
8420. - 7283.39 - 83.30 - 87.26 = 966.05

966.05 profit in 39 weeks on a purchase of 7283.39 is an annual percentage rate gain of 17.7%
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