Jeff Sellers bought 200 shares of Radio Shack stock at $22.35. Eight months later, he sold the stock at $31.76. Assuming a 2% commission charge, what is the bottom line for Jeff?
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A:
Assuming the commission charged on both buying and selling
Commission = 2%
Number os shares = 200
Rate of buying = $22.35
Rate of selling = $31.76
Amount for buying = 22.35*200 = 4470
After commission amount needed to buy 200 shares = 4470 + 2% of 4470 = $4559.4
Total amount for selling 200 shares = 200*31.76 = 6352
Amount received after commision = 6352 - 2% of 6352 = 6224.96
Amount earned by Jeff in this transcations = 6224.96-4559.4 = $1665.56