Missy bought 300 shares of GAM Corp. for 14 1/2 per share. What was the
total purchase price of the stock if she had to pay a 1% commission to
her stockbroker?
1.01 x 300 x 14.50 =___
Stock purchase commissions are usually not a percentage, but that is the way they want you to do it.
Well, I hope Missy didn't pay her stockbroker in clown noses! Anyway, to calculate the total purchase price of the stock, we'll first determine the cost per share:
14 1/2 = 14 + 1/2 = $14.50
Next, we'll calculate the commission she has to pay to her stockbroker:
1% of $14.50 = $0.145
Now, we can calculate the total purchase price of the stock:
Total purchase price = (Number of shares * Cost per share) + Commission
=(300 shares * $14.50 per share) + $0.145
=$4,350 + $0.145
So, the total purchase price of the stock, including the 1% commission, is $4,350.145.
To calculate the total purchase price of the stock, we need to multiply the number of shares by the price per share and add the commission.
The number of shares Missy bought is 300.
The price per share is 14 1/2, which can also be written as 14.5.
The total purchase price of the stock without the commission is:
300 shares * $14.5 per share = $4350
To calculate the commission, we need to find 1% of the total purchase price:
1% of $4350 = $43.50
Finally, to find the total purchase price of the stock including the commission, we add the commission to the total purchase price without the commission:
Total purchase price = $4350 + $43.50 = $4393.50
Therefore, the total purchase price of the stock, including a 1% commission, is $4393.50.
To calculate the total purchase price of the stock, we need to consider the cost of the shares and the commission payment to the stockbroker.
First, let's calculate the cost of the shares:
Missy bought 300 shares at a price of 14 1/2 per share.
To convert the mixed fraction (14 1/2) to an improper fraction, we multiply the whole number (14) by the denominator (2), and then add the numerator (1). This gives us:
14 * 2 + 1 = 29/2
Now, let's calculate the total cost of the shares:
Total cost of shares = Number of shares * Price per share
Total cost of shares = 300 * 29/2 = 8700/2 = 4350
Next, let's calculate the commission amount:
Commission amount = 1% of the total cost of shares
Commission amount = 1/100 * Total cost of shares
Commission amount = (1/100) * 4350 = 4350/100 = 43.50
Finally, let's find the total purchase price of the stock:
Total purchase price = Total cost of shares + Commission amount
Total purchase price = 4350 + 43.50 = 4393.50
Therefore, the total purchase price of the stock, including the 1% commission to her stockbroker, is $4393.50.