Answered

IDNLearn.com offers a seamless experience for finding and sharing knowledge. Discover the information you need quickly and easily with our reliable and thorough Q&A platform.

Select the correct answer from each drop-down menu.

\begin{tabular}{|l|c|l|}
\hline
Fee Schedule & \begin{tabular}{c}
Fee per \\
Trade
\end{tabular} & \multicolumn{1}{c|}{Commission} \\
\hline
\begin{tabular}{l}
Portfolio less than \\
[tex]$\$[/tex]100,000[tex]$
\end{tabular} & $[/tex]\[tex]$10$[/tex] & \begin{tabular}{l}
[tex]$1\%$[/tex] commission \\
plus fees per trade
\end{tabular} \\
\hline
\begin{tabular}{l}
Portfolio equal to or \\
greater than \\
[tex]$\$[/tex]100,000[tex]$
\end{tabular} & $[/tex]\[tex]$8$[/tex] & \begin{tabular}{l}
[tex]$0.75\%$[/tex] commission \\
plus fees per trade
\end{tabular} \\
\hline
\end{tabular}

Joe's broker's fee schedule is given in the table. Joe's current portfolio is worth [tex]$\$[/tex]50,000[tex]$. He wants to purchase 50 shares of a company's stock for a purchase price of $[/tex]\[tex]$15$[/tex] per share.

Joe will need to pay a commission of [tex]$\square$[/tex]. The total amount charged by the broker will be [tex]$\square$[/tex].

Sagot :

GinnyAnsweridn
Given Joe's current portfolio worth of \[tex]$50,000 and the fee schedule, we can determine the fees and commission he needs to pay. Here's the step-by-step solution: 1. Determine the fee per trade and commission rate: - Since Joe's portfolio is less than \$[/tex]100,000, the fee per trade is \[tex]$10. - The commission rate is 1%. 2. Calculate the total purchase amount of the shares: - Joe wants to purchase 50 shares. - Each share costs \$[/tex]15.
- Total purchase amount = 50 shares \[tex]$15/share = \$[/tex]750.

3. Calculate the commission:
- The commission is 1% of the total purchase amount.
- Commission = 1% of \[tex]$750 = \$[/tex]750 0.01 = \[tex]$7.50. 4. Calculate the total amount charged by the broker: - Total broker charge = Total purchase amount + commission + fee per trade - Total broker charge = \$[/tex]750 + \[tex]$7.50 + \$[/tex]10 = \[tex]$767.50. Therefore, Joe will need to pay a commission of \$[/tex]7.50. The total amount charged by the broker will be \[tex]$767.50. Thus, the correct answers to fill in the blanks are: - Joe will need to pay a commission of \$[/tex]7.50.
- The total amount charged by the broker will be \$767.50.
We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com provides the answers you need. Thank you for visiting, and see you next time for more valuable insights.