Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

A stockbroker earns a commission by a flat fee for each transaction as well as a fee per share. On a particular transaction, the stockbroker sold 5,000 shares to a client at a rate of $0.01 per share. The cost of the transaction totaled $57.50. Which of the following equations describes the cost of this transaction in terms of shares sold?
A.y = 0.01x
B.y = 0.01x + 7.5
C.y = 0.01x + 4,999.425
D.y = 0.01x + 5,000

Sagot :

Ryan2
Clearly, alternative B

y = 0.01x + 7.5
y = (0.01)*5000 + 7,5
y = 50 + 7.5
y = 57.50

Answer:

Option B. y = .01x + 7.5

Step-by-step explanation:

If a stock broker earns a commission by a flat fee for each transaction as well as a fee per share.

Let the commission on each share charged by the stock broker is x.

Selling price of 5000 shares + total fees of broker = Cost of the transaction

5000×.01 + Fees = 57.50

Fees = 57.50 - 50 = $7.50

Now we can form the equation which represents the cost of this transaction  as

y = .01x + 7.5

Therefore option B is the correct answer.

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.