Question

nalani burrows purchased 100 shares of mitchell electronics four years ago at $15.00 each. she paid a $30 commission on this transaction. she has decided to sell these shares at $25.00 each and will incur a $25 commission on this sale. what is the total investment amount?

Answer 1

Nalani Burrows' total investment amount consists of the initial purchase cost of the 100 shares plus the purchase commission, and the net profit from the sale of the shares after paying the sale commission. The total purchase cost was $1,530, and she sold the shares for a total of $2,475 after commission. Her net profit from this investment was $945.

Step-by-step explanation:

To calculate the total investment amount for Nalani Burrows, we need to consider both the purchase and sale of the shares. Originally, Nalani bought 100 shares at $15.00 each, which amounts to $1,500 for the shares themselves. Additionally, she paid a $30 commission for the purchase. So the total purchase cost is:

$1,500 (for shares) + $30 (purchase commission) = $1,530

When she sold the shares, the selling price was $25.00 per share for 100 shares, totaling $2,500. A $25 commission was paid on the sale. So the total sale cost is:

$2,500 (from the sale of shares) - $25 (sale commission) = $2,475

The net profit from the transaction is the total sale cost minus the total purchase cost:

$2,475 (total sale cost) - $1,530 (total purchase cost) = $945

Nalani's Total Investment Amount

It's important to note that while the question asks for the total investment amount, based on the context it seems to be asking for the net gain from the investment. If that's the case, the net profit of $945 is what Nalani earned from her investment.

Answer 2

The total investment amount is $1555.00.

Step-by-step explanation:

To calculate the total investment amount, we need to consider the initial purchase of shares and any commissions paid.

1. The cost of 100 shares of Mitchell Electronics at $15.00 each is 100 * $15.00 = $1500.00.
2. A commission of $30 was paid on the purchase, so the total investment amount is $1500.00 + $30.00 = $1530.00.
3. The sale price of the 100 shares is $25.00 each, so the total amount received from the sale is 100 * $25.00 = $2500.00.
4. An additional commission of $25.00 will be incurred on the sale, so the total investment amount is $1530.00 + $25.00 = $1555.00.

Therefore, the total investment amount is $1555.00.