Question

Question 7 of 10

Zack buys 40 shares of eBay at the close price of $20.95. His broker charges
him 4% of each share as a transaction fee. How much did Zack spend in total
to buy this stock?
A. $838.00
B. $871.52
C. $856.28
D. $891.46

Answer 1

The cost of each share is $20.95, and Zack buys 40 shares, so the cost of the shares is 20.95 * 40 = $838.00.

Zack's broker charges him 4% of each share as a transaction fee, so the total transaction fee is 0.04 * 20.95 * 40 = $33.28.

Therefore, the total cost of the transaction is $838.00 + $33.28 = $871.28.

The correct answer is B. $871.52.