Answer:
D. $1507.92
Step-by-step explanation:
We have been given that Alex buys 30 shares of Wal-Mart at the close price of $48.80. His broker charges him 3% of each share as a transaction fee.
Let us find the cost of purchasing 30 shares by multiplying 30 by $48.80.
[tex]\text{Purchasing cost of 30 shares}=\$48.80\times 30[/tex]
[tex]\text{Purchasing cost of 30 shares}=\$1464[/tex]
Now, we need to find 3% of $1464 to find broker's fees.
[tex]\text{Broker's fees}=\frac{3}{100}\times \$1464[/tex]
[tex]\text{Broker's fees}=0.03\times \$1464[/tex]
[tex]\text{Broker's fees}=\$43.92[/tex]
[tex]\text{Total cost to buy the stock}=\$1464+\$43.92[/tex]
[tex]\text{Total cost to buy the stock}=\$1507.92[/tex]
Therefore, the total cost to buy the stock is $1507.92 and option D is the correct choice.
