Suki purchased $9,600 worth of stock and paid her broker a 1.75% broker fee. She had an immediate need for cash and was forced to sell the stock when it was worth $8,800. She used a discount broker who charged $32.50 per trade. What is the purchase cost

To find Suki's total purchase cost, we need to account for both the cost of the stock and the broker's fee on the initial purchase.

### Step 1: Calculate the broker's fee on the purchase

Suki purchased stock worth $9,600 and paid a 1.75% broker fee.

\[
\text{Broker's fee} = 9,600 \times \frac{1.75}{100} = 9,600 \times 0.0175 = 168
\]

### Step 2: Calculate the total purchase cost

The total purchase cost is the sum of the stock price and the broker's fee.

\[
\text{Total purchase cost} = 9,600 + 168 = 9,768
\]

### Final Answer:
The total purchase cost is **$9,768**.

Would you like a further breakdown, or do you have additional questions?

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Here are some related questions:
1. How would the purchase cost change if the broker fee was 2%?
2. What would the final amount be if she had sold the stock at a higher price?
3. How much profit or loss did Suki incur in this transaction?
4. What would the impact be if the initial stock purchase was $15,000 with the same broker fee?
5. How does the use of a discount broker with a flat rate compare to a percentage-based fee?

**Tip:** When dealing with percentage fees, convert the percentage to a decimal by dividing by 100 for straightforward calculations.

Suki purchased $9,600 worth of stock and paid her broker a 1.75% broker fee. She had an immediate need for cash and was forced to sell the stock when it was worth $8,800. She used a discount broker who charged $32.50 per trade. What is the purchase cost?

Learn how to calculate the total purchase cost of a stock, including a broker's fee and stock value. This example helps clarify percentage calculations and cost analysis in finance, suitable for Grades 7-10.

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