Mrs. Trujillo bought 400 shares of a company's stock for $42.98/share. She pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, when they were worth $56.13/share. What was her net gain?

Question

Mathematics

Noodle

17 December, 02:52

Mrs. Trujillo bought 400 shares of a company's stock for $42.98/share. She pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, when they were worth $56.13/share. What was her net gain?

+4

Answers (1)

Know the Answer?

Ibrahim Vang · Answer 1

Let's calculate her total investment:

$42.98/share x 400 shares = $17,192

+ $16 commission = $17,208

Her total proceeds from the sale are:

56.13/share x 400 shares = $22,452

Her Net gain, or profits from the purchase and sale of the stock, is therefore:

Gain: $22,452

-Cost: $17,208

= $5,244

Answer is $5,244