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.
