Question

6. Arthur McGraw purchased 320 shares of Auto Zone. He paida commission of 1.2% of the cost of the stock to thestockbroker.The stocks cost him $78.50 per share.a. What was the cost of the stock?b. How much was the commission?c. What was the total paid?

Answer 1

QUESTION A

320 shares were purchased at a cost of $78.50 per share.

The cost of the total share will be:

$\Rightarrow320\times78.50=\ 25,120$

The total cost of the stock is $25,120.

QUESTION B

The commission was given to be 1.2% of the total stock.

The amount will be calculated to be:

$\Rightarrow\frac{1.2}{100}\times25120=\ 301.44$

The commission is $301.44.

QUESTION C

The total amount paid is the sum of the cost of the stock and the commission. Therefore, the total cost will be:

$\Rightarrow25120+301.44=\ 25,421.44$

The total amount paid was $25,421.44.