# math

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The buying and selling commission schedule shown below is from a well-known online discount brokerage firm.?

Taking into consideration the buying and selling commissions in the schedule find annual rate of interest earned by each investment?

Transaction Size Commission Rate
\$0-\$2,500 \$19+ 1.6% of principal
\$2,501-\$6,000 \$44 + 0.6% of principal
\$6,001-\$22,000 \$62 + 0.3% of principal
\$22,001-\$50,000 \$84 + 0.2% of principal
\$50,001-\$500,000 \$134 + 0.1% of principal
\$500,001+ \$234+ 0.08% of principal

An investor purchases 500 shares at \$14.20 a share, holds the stock for 39 weeks, and then sells the stock for \$16.84 a share.

• math -

What you have listed are investment commissions.

The total charge was in this case \$7200 plus \$62 + 21.30. That is 7283.39. The stock was sold for \$16.84 a share, or \$8420.00 There would be selling commission of %62 + 25.26 = 87.26

The net return on the buying and selling of the stock would be
8420. - 7283.39 - 83.30 - 87.26 = 966.05

966.05 profit in 39 weeks on a purchase of 7283.39 is an annual percentage rate gain of 17.7%