5
InstructionMultiple Choice

Buying and Selling Stock

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

Ben’s broker charges a commission of $125 for every $1,000 of stock bought or sold. Ben bought 442 shares of Xyx Motors when the share price was $15.67, and sold them when the share price was $23.14. How much profit did Ben make?

Answer
A
$10,227.88
B
$8,083.62
C
$1,157.48
D
$3,301.74

Explanation

The commission is 12.5% of each transaction because $125 ÷ $1,000 = 0.125. Ben’s purchase cost was 442 × $15.67 = $6,926.14, and his sale proceeds were 442 × $23.14 = $10,227.88. After rounding the commissions to cents, he paid $865.77 to buy and $1,278.49 to sell, so his profit was $10,227.88 − $6,926.14 − $865.77 − $1,278.49 = $1,157.48. The correct choice is C, $1,157.48.

AI-written and checked against the verified answer.

Previous
Next