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

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CollinStanley CollinStanley · Answer 1 · 2017-12-14T20:48:47+01:00

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

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RenatoMattice RenatoMattice · Answer 2 · 2018-12-31T10:56:20+01:00

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

[tex]30\times 20.95+20\times 26.75\\\\=\$1163.5[/tex]

Amount he was charged for commison is given by

[tex]1163.5\times 0.03\\\\=\$34.905[/tex]

Total amount he paid including commission is given by

[tex]\$1163.5+\$34.405\\\\=\41198.405[/tex]

similarly, he sold his shares , amount he received ,

[tex]35.25\times 50\\\\=\$1762.5[/tex]

Again he was charged commission which is given by

[tex]1762.5\times 0.03\\\\=\$52.875[/tex]

Total amount he received on selling the shares is given by

[tex]\$1762.5-\$52.875\\\\=\$1709.625[/tex]

After all of his transactions, Connor makes

[tex]\$1709.625-\$1198.405\\\\=\$511.22[/tex]

Hence, he made $511.21.

Therefore, Option 'C' is correct.