5
QuizMultiple Choice

Buying and Selling Stock

Question 5 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Melanie purchased 621 shares of Animite Energy at $30.60 apiece. When the price hit $36.23 per share, Melanie sold her holdings in Animite Energy. Melanie’s broker charges $48 for each $1,000 of stock bought or sold. How much profit did Melanie make?

Answer
A
$1,504.17
B
$22,498.83
C
$3,496.23
D
$1,992.06

Explanation

Melanie’s gross gain was 621 × ($36.23 − $30.60) = $3,496.23. The broker charges 4.8% of each transaction: the purchase commission is $19,002.60 × 0.048 = $912.12, and the sale commission is $22,498.83 × 0.048 = $1,079.94. Subtracting both commissions gives $3,496.23 − $912.12 − $1,079.94 = $1,504.17, so her profit was $1,504.17.

AI-written and checked against the verified answer.

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