Answer :
Let's go through the problem step-by-step:
1. Identify the number of transactions:
- There is one starting transaction (1-1-17).
- Then Carl bought stocks on two occasions (3-11-17 and 5-10-17).
- Finally, Carl sold his stocks on (12-30-17).
- Therefore, the total transactions where the broker charges a fee are three (bought on 3-11-17, bought on 5-10-17, and sold on 12-30-17).
2. Calculate the broker's total fees:
- The broker charges [tex]$\$[/tex] 5$ per trade.
- Carl made three trades where the broker fee applies.
- Total fees = 3 trades × \[tex]$ 5 per trade = \$[/tex] 15.
3. Calculate the initial investment:
- Carl's starting investment on 1-1-17 was 10 shares at \[tex]$ 50 per share = \$[/tex] 500.
- On 3-11-17, Carl bought 10 shares at \[tex]$ 40 per share = \$[/tex] 400.
- On 5-10-17, Carl bought 30 shares at \[tex]$ 50 per share = \$[/tex] 1500.
- Total investment = \[tex]$ 500 + \$[/tex] 400 + \[tex]$ 1500 = \$[/tex] 2400.
4. Calculate the amount received from selling the stocks:
- On 12-30-17, Carl sold 50 shares at \[tex]$ 60 per share = \$[/tex] 3000.
5. Calculate the final return after deducting brokerage fees:
- The total amount received from selling stocks = \$ 3000.
- Subtract the total initial investment = \$ 2400.
- Subtract the total brokerage fees = \$ 15.
- Final return = \[tex]$ 3000 - \$[/tex] 2400 - \[tex]$ 15 = \$[/tex] 585.
So, Carl's total brokerage fees were \[tex]$ 15 for the year. His final return for the year was \$[/tex] 585 after deducting all fees but before paying taxes on the return.
To complete the statements in the question:
1. Carl's total brokerage fees were \$ 15 for the year.
2. His final return for the year was \$ 585 after deducting all fees but before paying taxes on the return.
1. Identify the number of transactions:
- There is one starting transaction (1-1-17).
- Then Carl bought stocks on two occasions (3-11-17 and 5-10-17).
- Finally, Carl sold his stocks on (12-30-17).
- Therefore, the total transactions where the broker charges a fee are three (bought on 3-11-17, bought on 5-10-17, and sold on 12-30-17).
2. Calculate the broker's total fees:
- The broker charges [tex]$\$[/tex] 5$ per trade.
- Carl made three trades where the broker fee applies.
- Total fees = 3 trades × \[tex]$ 5 per trade = \$[/tex] 15.
3. Calculate the initial investment:
- Carl's starting investment on 1-1-17 was 10 shares at \[tex]$ 50 per share = \$[/tex] 500.
- On 3-11-17, Carl bought 10 shares at \[tex]$ 40 per share = \$[/tex] 400.
- On 5-10-17, Carl bought 30 shares at \[tex]$ 50 per share = \$[/tex] 1500.
- Total investment = \[tex]$ 500 + \$[/tex] 400 + \[tex]$ 1500 = \$[/tex] 2400.
4. Calculate the amount received from selling the stocks:
- On 12-30-17, Carl sold 50 shares at \[tex]$ 60 per share = \$[/tex] 3000.
5. Calculate the final return after deducting brokerage fees:
- The total amount received from selling stocks = \$ 3000.
- Subtract the total initial investment = \$ 2400.
- Subtract the total brokerage fees = \$ 15.
- Final return = \[tex]$ 3000 - \$[/tex] 2400 - \[tex]$ 15 = \$[/tex] 585.
So, Carl's total brokerage fees were \[tex]$ 15 for the year. His final return for the year was \$[/tex] 585 after deducting all fees but before paying taxes on the return.
To complete the statements in the question:
1. Carl's total brokerage fees were \$ 15 for the year.
2. His final return for the year was \$ 585 after deducting all fees but before paying taxes on the return.
