Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much? a. Broker Q will charge $375.35 less than Broker P. b. Broker Q will charge $160.22 less than Broker P. c. Broker P will charge $184.38 less than Broker Q. d. Broker P will charge $425.00 less than Broker Q.

Question

Mathematics

Sawyer Ferrell

28 April, 16:32

Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much? a. Broker Q will charge $375.35 less than Broker P. b. Broker Q will charge $160.22 less than Broker P. c. Broker P will charge $184.38 less than Broker Q. d. Broker P will charge $425.00 less than Broker Q.

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Agustin Nash · Answer 1

We are given with two charges: in which we can use to compute the difference of the two brokers when the share is 500 costing 18.75 each. In this case, broker P is equal to P8.50/10 * 500 equal to P425. Broker Q is equal to $65 / 1000 * (18.75*500) equal to P609.375. The difference is P184.38