Question

Maggie bought 20 shares of Google at the close price of $472.68. She bought

Answer 1

Answer:

C. $1,060

Explanation:

First transaction

20 shares of Google at close price of $472.68

= 20 × $472.68

= $9,453.6

Second transaction, a year later;

she bought 20 shares at close price of $491.32

= 20 × $491.32

= $9,826.4

Third transaction. Two years later, she sold all her shares;

In total 3 transactions, Maggie's broker charge will be;

$50 × 3 = $150

The last transaction will get($512.25 per share for 20 + 20 = 40 shares)

40 × $512.25 = $20,490

Maggie will get $20,490 less $150 due to the brokerage's charge.

$20,490 - $150 = $20,340

To get how much Maggie makes,

= Total value of third transaction (Sales of shares) - (Total value of first transaction + Total value of Second transaction)

= $20,340 - ($9,453.6 + $9,826.4)

= $1,060