Explanation
We are given the following:
• Alan DeLucia purchased 1,000 FPC enterprises shares.
,• A sharecosts $38.54.
,• A commission of $0.35 is paid per share
We are required to determine the cost of the stock and the total amount paid.
The cost of the stock bought can be calculated as:
[tex]\begin{gathered} Each\text{ }share=38.54 \\ 1000\text{ }shares=38.54\times1000=38,540\text{ }dollars \end{gathered}[/tex]Hence, the cost of the stock is $38,540.
Next, we need to determine the total amount paid for commission as follows:
[tex]\begin{gathered} Commission\text{ }per\text{ }share=0.35 \\ For\text{ }1000\text{ }shares=0.35\times1000=350\text{ }dollars\text{ } \end{gathered}[/tex]Therefore, the total amount paid is:
[tex]\begin{gathered} Total\text{ }amount=Cost\text{ }of\text{ }stock+commission \\ Total\text{ }amount=38,540+350 \\ Total\text{a}mount=38,890\text{ }dollars \end{gathered}[/tex]Hence, the total amount paid is $38,890.
