An investor purchased 400 shares of stock for $30.43 per share and sold them later for $32.55 per share. The broker's commission was 3% of the purchase price and 3% of the selling price. Find the amount the investor made on the stock.

Question

Quizplus · Accepted Answer

The investor made a profit of $32.55 - $30.43 = $2.12 per share. The total profit is $2.12 * 400 = $848. However, the investor had to pay a commission of 3% of the purchase price and 3% of the selling price. The commission on the purchase price is $30.43 * 0.03 * 400 = $36.52. The commission on the selling price is $32.55 * 0.03 * 400 = $39.08. The total commission is $36.52 + $39.08 = $75.60. Therefore, the investor made a net profit of $848 - $75.60 = $92.24.

An Investor Purchased 400 Shares of Stock for $30