
At your discount brokerage firm, it costs $9.95 per stock trade. How much money do you need to buy 100 shares of Ralph Lauren (RL), which trades at $85.13?


To calculate the total cost of buying 100 shares of Ralph Lauren (RL), you need to include both the cost of the shares and the trading fee charged by your brokerage.

1. **Cost of Shares:**

\[
\text{Cost of Shares} = \text{Number of Shares} \times \text{Price per Share}
\]

\[
\text{Cost of Shares} = 100 \times 85.13 = 8513
\]

2. **Add the Brokerage Fee:**

\[
\text{Total Cost} = \text{Cost of Shares} + \text{Brokerage Fee}
\]

\[
\text{Total Cost} = 8513 + 9.95 = 8522.95
\]

So, you would need **$8,522.95** to buy 100 shares of Ralph Lauren (RL) including the trading fee.

Would you like further details or have any questions?

Here are 5 related questions to expand your understanding:
1. How does the brokerage fee impact the profitability of small trades?
2. Are there ways to reduce or eliminate brokerage fees?
3. What is the difference between a full-service and a discount brokerage?
4. How does the price of a stock affect the total trading cost for larger transactions?
5. What are the implications of frequent trading on overall investment returns?

**Tip:** When making trades, always factor in brokerage fees to get an accurate picture of your total investment cost.

Learn how to calculate the total cost of buying 100 shares of Ralph Lauren (RL) including brokerage fees. This problem covers arithmetic and financial mathematics, specifically calculating costs involving shares and trading fees. Suitable for high school students and anyone interested in understanding brokerage fees in stock trading.

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