Ryan neal bought 1200 shares of Ford at 15.98 per share. Assume a commission of 2% of the purchase price. What is the total cost to Ryan

Question

Need to show work and round to the nearest 10th.  Not sure about word problems came up with a few different ways of doing this but unsure if I am doing it the right way or not.

Answer 1

Bond cost= 1200(15.98)

Commission=1200(15.98)(0.02)

Bond cost+commission=total cost. 

1200(15.98)+ 1200(15.98)(0.02)=

19,176+383.52=19,559.52--->round to nearest 10th---> 19,559.5

 

Hope this helps!

Answer 2

cost of all the shares is 1200 times the price of one share...call this X.

 

in addition, there is a 2% commission to be paid to broker...compute this as 0.02 times X.

 

Add these two quantities.  Done!