To determine the correct values for the two blank spaces, let's follow the steps Joe would need to take based on the fee schedule and his portfolio value.
1. Determine the appropriate fee and commission rate:
Joe's portfolio is worth [tex]$50,000, which is less than $[/tex]100,000. Thus, the applicable fee per trade is [tex]$10, and the commission rate is 1%.
2. Calculate the total purchase amount:
Joe wants to purchase 50 shares at $[/tex]15 per share, so the total purchase amount is:
[tex]\[
50 \text{ shares} \times 15 \text{ dollars per share} = 750 \text{ dollars}
\][/tex]
3. Calculate the commission:
The commission rate for the portfolio less than [tex]$100,000 is 1%. Hence, the commission is:
\[
1\% \text{ of } 750 \text{ dollars} = 0.01 \times 750 = 7.5 \text{ dollars}
\]
Therefore, Joe will need to pay a commission of $[/tex]7.5.
4. Add the fee per trade:
The fee per trade for a portfolio less than [tex]$100,000 is $[/tex]10, so the total amount charged by the broker, including both the commission and the fee, is:
[tex]\[
750 \text{ dollars} (\text{purchase amount}) + 7.5 \text{ dollars} (\text{commission}) + 10 \text{ dollars} (\text{fee}) = 767.5 \text{ dollars}
\][/tex]
Putting it all together, Joe will need to pay a commission of [tex]$7.5. The total amount charged by the broker will be $[/tex]767.5.
