Question

tara is purchasing stocks and bonds. she buys 100 shares of a stock priced at $50 per share and $5,000 worth of bonds. the brokerage charges a 3% fee on the total stock - value and a 2% fee on the bonds. what is the total transaction fee? $100 $5,000 $150 $250

Explanation:

Step1: Calculate stock - related fee

The value of stocks is $100\times50 = 5000$ dollars. The fee on stocks is $3\%$ of the stock - value, so the stock - fee is $0.03\times5000=150$ dollars.

Step2: Calculate bond - related fee

The value of bonds is $5000$ dollars. The fee on bonds is $2\%$ of the bond - value, so the bond - fee is $0.02\times5000 = 100$ dollars.

Step3: Calculate total transaction fee

The total transaction fee is the sum of the stock - fee and the bond - fee, so $150 + 100=250$ dollars.

Answer:

$250$