MATH SOLVE

2 months ago

Q:
# Ben’s broker charges a commission of $125 for every $1,000 of stock bought or sold. Ben bought 442 shares of Xyx Motors when the share price was $15.67, and sold them when the share price was $23.14. How much profit did Ben make? a. $10,227.88 b. $8,083.62 c. $1,157.48 d. $3,301.74 Please select the best answer from the choices provided A B C D

Accepted Solution

A:

Answer:The correct choice is C) $1,157.48Step-by-step explanation:Consider the provided information.Ben’s broker charges a commission of $125 for every $1,000 of stock bought or sold.That means broker charges $0.125 for every stock.Ben bought 442 shares of Xyx Motors when the share price was $15.67.The broker's charge for buying 442 shares: [tex]0.125\times 442\times 15.67=865.7675[/tex]Ben sold 442 shares of Xyx Motors when the share price was $23.14,The broker's charge for selling 442 shares: [tex]0.125\times 442\times 23.14=1278.485[/tex]Profit earn by Ben is: [tex]442(\$23.14-\$15.67)=442(\$7.47)=\$3,301.74[/tex]The total profit earned by Ben is: Profit - Broker's charges[tex]\$3,301.74-(\$865.7675+\$1278.485)=\$3,301.74-\$2144.2525=\$1,157.48[/tex]Hence, the correct choice is C) $1,157.48