Eduardo is buying three ETFs in his brokerage account. ETF A trades at $80 per share, ETF B trades at $50 per share, and ETF C trades at $40 per share. If he is buying 50 shares of A, 50 shares of B, and 25 shares of C, and the brokerage charges an $8 commission per trade, how much will he need to make this purchase?

Question

Quizplus · Accepted Answer

The total cost is calculated by adding the cost of shares and the commissions for each ETF. For ETF A: 50 shares * $80/share = $4,000. For ETF B: 50 shares * $50/share = $2,500. For ETF C: 25 shares * $40/share = $1,000. Total cost of shares = $4,000 + $2,500 + $1,000 = $7,500. With an $8 commission per trade for three trades, the total commissions = 3 * $8 = $24. Therefore, the total cost = $7,500 + $24 = $7,524.

Eduardo Is Buying Three ETFs in His Brokerage Account