Sam decides to buy 100 shares of ABC company. They cost $26.25 a share. The commission is 5% of the total price. What is Sam's total cost?
2756.75
1.05 * 100 * 26.25 =
To calculate Sam's total cost, we need to determine two components: the total cost of the shares and the commission.
1. Total cost of the shares:
Total cost = price per share * number of shares
Total cost = $26.25 * 100 shares
Total cost = $2,625
2. Commission:
Commission = 5% * total cost
Commission = 0.05 * $2,625
Commission = $131.25
3. Sam's total cost:
Total cost = total cost of shares + commission
Total cost = $2,625 + $131.25
Total cost = $2,756.25
Therefore, Sam's total cost for buying 100 shares of ABC company, including the commission, is $2,756.25.
To calculate Sam's total cost, we need to consider the price per share and the commission.
Step 1: Calculate the total price of 100 shares
The cost of each share is $26.25.
So, the total price of 100 shares can be calculated as:
Total price = price per share * number of shares
= $26.25 * 100
= $2625
Step 2: Calculate the commission
The commission is 5% of the total price.
To find the commission, multiply the total price by 5%:
Commission = total price * commission rate
= $2625 * 5%
= $2625 * 0.05
= $131.25
Step 3: Calculate the total cost
The total cost will be the sum of the total price and the commission.
Total cost = total price + commission
= $2625 + $131.25
= $2756.25
Therefore, Sam's total cost to buy 100 shares of ABC company is $2756.25.