Question

leo invests $20,000 in a mutual fund and purchases 30 shares of a stock priced at $150 per share. the brokerage charges a 2% fee on the mutual fund and a 1% fee on the stocks. how much in total fees does leo need to pay? $445 $400 $45 $1,500

Explanation:

Step1: Calculate mutual - fund fee

The investment in the mutual fund is $20000$, and the fee rate is 2%. So the mutual - fund fee is $20000\times0.02 = 400$.

Step2: Calculate stock - purchase cost

The number of stock shares is 30, and the price per share is $150$. So the total cost of stock purchase is $30\times150=4500$.

Step3: Calculate stock - purchase fee

The fee rate on the stock is 1%. So the stock - purchase fee is $4500\times0.01 = 45$.

Step4: Calculate total fees

Add the mutual - fund fee and the stock - purchase fee. Total fees=$400 + 45=445$.

Answer:

$445$