Question

Connor bought 30 shares of eBay at $20.95. A year later, he bought 20 more shares at $26.75. He later sold all of his shares at the price of $35.25. Connors broker charges him 3% of each share as a transaction fee. After all of his transactions, how much money did Connor make?
A. $525.11
B. $493.37
C. $511.21
D. $515.53

Answer 1

 (35.25*50-20.95*30-26.75*20) - ((20.95*30)+(26.75*20*)+(35.25*50))*.03 = 599-87.78 = $511.21

Answer 2

Answer:  Option 'C' is correct.

Step-by-step explanation:

Since we have given that

Number of shares of eBay bought by Connor = 30

Cost of each share = $20.95

Number of shares he bought more = 20

Cost of each share = $26.75

Rate of charges of broker's commission =- 3% on each share

Selling price of each share = $35.25

According to question,

Total amount he paid to bought the shares

$30\times 20.95+20\times 26.75\\\\=\ 1163.5$

Amount he was charged for commison is given by

$1163.5\times 0.03\\\\=\ 34.905$

Total amount he paid including commission is given by

$\ 1163.5+\ 34.405\\\\=\41198.405$

similarly, he sold his shares , amount he received ,

$35.25\times 50\\\\=\ 1762.5$

Again he was charged commission which is given by

$1762.5\times 0.03\\\\=\ 52.875$

Total amount he received on selling the shares is given by

$\ 1762.5-\ 52.875\\\\=\ 1709.625$

After all of his transactions, Connor makes

$\ 1709.625-\ 1198.405\\\\=\ 511.22$

Hence, he made $511.21.

Therefore, Option 'C' is correct.