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26 October, 18:37

Zack buys 40 shares of ebay at the close price of $20.95. his broker charges him 4% of each share as a transaction fee. how much did zack spend in total to buy this stock?

a. $838.00

b. $856.28

c. $871.52

d. $891.46

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Answers (1)
  1. 26 October, 21:52
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    First, calculate for the total charge for the share which will be calculated by multiplying 1.04 to the close price,

    P = (1.04) ($20.95)

    P = $21.788

    Multiplying the calculated value by 40,

    P = $21,788 x 40 = $871.52

    Thus, the answer to this item is the third choice.
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