Melanie purchased 621 shares of Animite Energy at $30.60 apiece. When the price hit $36.23 per share, Melanie sold her holdings in Animite Energy. Melanie’s broker charges $48 for each $1,000 of stock bought or sold. How much profit did Melanie make?
Accepted Solution
A:
Answer:A. $1,504.17Step-by-step explanation:Total cost of producing 621 shares= 621 × 30.60= 19002.6Also, cost of selling 621 shares at $48 each is= 621 × 36.23= 22498.83Also, the charges paid as brokerage during purchase and selling of shares= [19002/1000 + 22498.83/1000] × 48= [19.0026 + 22.49883] × 48= 1992.06864Therefore,Net profit = 22498.83 - 19002.6 - 1992.06864Net profit = $1,504.17