A stockbroker earns a commission by a flat fee for each transaction as well as a fee per share. On a particular transaction, the stockbroker sold 5,000 shares to a client at a rate of $0.01 per share. The cost of the transaction totaled $57.50. Which of the following equations describes the cost of this transaction in terms of shares sold?
A. \( y = 0.01x \)
B. \( y = 0.01x + 7.5 \)
C. \( y = 0.01x + 4,999.425 \)
D. \( y = 0.01x + 5,000 \)
Answer (3)
Clearly, alternative B
y = 0.01x + 7.5 y = (0.01)*5000 + 7,5 y = 50 + 7.5 y = 57.50
Option B. y = .01x + 7.5 ;
The correct equation that describes the cost of the transaction in terms of shares sold is Option B: y = 0.01x + 7.50. This equation takes into account the $0.01 fee per share for 5000 shares sold and includes a flat fee of $7.50. Thus, the total cost can be represented multifold in this way.
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