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Select the correct answer from each drop-down menu.

| Fee Schedule | Fee per Trade | Commission |
|-------------------------------------|---------------|-----------------------------------|
| portfolio less than [tex]$100,000 | $[/tex]10 | 1% commission plus fees per trade |
| portfolio equal to or greater than [tex]$100,000 | $[/tex]8 | 0.75% commission plus fees per trade|

Joe's broker's fee schedule is given in the table. Joe's current portfolio is worth [tex]$50,000. He wants to purchase 50 shares of a company's stock for a purchase price of $[/tex]15 per share.

Joe will need to pay a commission of [tex]$\square$[/tex]. The total amount charged by the broker will be [tex]$\square$[/tex].



Answer :

GinnyAnswer
Certainly! Let's break down the problem step by step using the data given:

1. Determine Total Purchase Price:
- Joe wants to buy 50 shares of stock.
- The purchase price per share is \[tex]$15. - Total Purchase Price = Number of Shares × Price per Share = 50 shares × \$[/tex]15 = \[tex]$750. 2. Determine Commission Fee: - Joe's portfolio is less than \$[/tex]100,000, so he falls into the first fee schedule category.
- The commission rate for portfolios less than \[tex]$100,000 is 1%. - Commission = Commission Rate × Total Purchase Price = 1% × \$[/tex]750 = 0.01 × \[tex]$750 = \$[/tex]7.5.

3. Determine Fee per Trade:
- According to the fee schedule, the fee per trade for portfolios less than \[tex]$100,000 is \$[/tex]10.

4. Calculate Total Amount Charged by the Broker:
- The total amount charged by the broker includes the commission plus the fee per trade.
- Total Amount Charged by the Broker = Commission + Fee per Trade = \[tex]$7.5 + \$[/tex]10 = \[tex]$17.5. So, the completed answer is: - Joe will need to pay a commission of \$[/tex]7.5.
- The total amount charged by the broker will be \[tex]$17.5. Therefore, the entries in the drop-down menus should be: 1. \( \$[/tex]7.5 \) for the commission.
2. [tex]\( \$17.5 \)[/tex] for the total amount charged by the broker.

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