Q:

McKenzie buys 250 shares of stock for $12 a share and pays a 2% commision. She sells the stock 3 years later for $18 a share and pays 1% commission. What are her net proceeds?

Accepted Solution

A:
250 shares for $ 12 per share......250 * 12 = 3000
plus the 2% commission......3000(1.02) = 3060...so the commission is $ 60

she then sells her stock (250 shares) for $ 18 a share....
250 * 18 = 4500
plus the 1% commission....4500(1.01) = 4545...so the commission is $ 45

net proceeds is the amount received by the seller after all costs and expenses are deducted...

expenses : 3000 + 60 + 45 = 3105
revenue : 4500

net proceeds = 4500 - 3105 = $ 1395 <==