45
QuizMultiple Choice

N/A — Exam

Question 45 • Financial Math

Marco decides to invest in a mutual fund. He purchases 200 shares of the fund at $⁢50 per share. His broker charges a fee of 1.2% of the total transaction amount. After holding the investment for two years, Marco sells all 200 shares at $⁢60 per share, again incurring a 1.2% broker fee on the sale. Determine how much Marco paid in fees in total.

Answer
A
264 dollars
B
240 dollars
C
288 dollars
D
120 dollars

Explanation

Marco’s purchase totaled 200 × $50 = $10,000, so the 1.2% purchase fee was $10,000 × 0.012 = $120. His sale totaled 200 × $60 = $12,000, so the sale fee was $12,000 × 0.012 = $144; together, the fees were $120 + $144 = $264, choice A.

AI-written and checked against the verified answer.

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