See Description, total purchase price commission

Question

Billy is a broker who charges 1% per stock transaction. A competing online broker charges $19 per trade. If someone is planning to purchase stock, at what total purchase price would Billy’s commission be the same as the online broker fee?

Please show me a step by step answer of how to do this.

Answer 1

The equation for this problem is 1% of transaction price or .01x = $19

 

Solving for x gives us the value of the transaction.

 

x = $19/.01 = $1900