Tyler bought 20 shares of wal-mart at $48.80. A year later, he bought 20 more shares at $54.60. He later sold all of his shares at the price of $62.80. Tyler's broker charges him 3% of each share as a transaction fee. After all of his transactions, how much did Tyler make?
Accepted Solution
A:
Answer:Tyler would make $306.60Step-by-step explanation:Cost of 20 shares of wal-mart is 48.80×20=$976Cost of 20 more shares is 54.60×20=$1092Total cost of shares = 976+1092 = $2068Now, the transaction fee = 2068×0.03=$62.04Hence, total cost of shares is given by 2068+62.04 = $2130.04Now, selling price of the shares is given by62.80×40 - 3% transaction fees on this amount= 2512 - 0.03×2512 = $2436.64Therefore, Tyler Hence, Profit = Selling price - Cost price Profit = $2436.64-$2130.04Profit = $306.60Therefore, Tyler would make $306.60