Jeff Sellers bought 200 shares of Radio Shack stock at $22.35. Eight months later, he sold the stock at $31.76. Assuming a 2% commission charge, what is the bottom line for Jeff?

Answer 1

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A:

Assuming the commission charged on both buying and selling

Commission = 2%

Number os shares = 200

Rate of buying = $22.35

Rate of selling = $31.76

Amount for buying = 22.35*200 = 4470

After commission amount needed to buy 200 shares = 4470 + 2% of 4470 = $4559.4

Total amount for selling 200 shares = 200*31.76 = 6352

Amount received after commision = 6352 - 2% of 6352 = 6224.96

Amount earned by Jeff in this transcations = 6224.96-4559.4 = $1665.56