Question

Fierro brothers, a discount broker, charges their customers a $19 flat fee per trade. The sondo investment house charges a 2% commission. For what amount of stock would both brokers charge the same commission?

Answer 1

yes it will be the same

Explanation:

Let’s call the amount of stock traded “x”. Then we can set up an equation like this:

$19 = 0.02x

To solve for x, we can divide both sides by 0.02:

$950 = x

Therefore, if you trade $950 worth of stock, both Fierro Brothers and Sondo Investment House would charge you the same commission.