Astockbroker 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

Option B. y = .01x + 7.5

Step-by-step explanation:

If a stock broker earns a commission by a flat fee for each transaction as well as a fee per share.

Let the commission on each share charged by the stock broker is x.

Selling price of 5000 shares + total fees of broker = Cost of the transaction

5000×.01 + Fees = 57.50

Fees = 57.50 - 50 = $7.50

Now we can form the equation which represents the cost of this transaction  as

y = .01x + 7.5

Therefore option B is the correct answer.

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