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Question
You purchase 500 shares of stock on margin at a cost per share of $22. The initial margin requirement is 60 percent. The effective interest rate on the margin loan is 6.4 percent. How much interest will you pay if you repay the loan in four months?A. $68.77
B. $91.93
C. $102.16
D. $112.38
E. $117.04
Answer
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Related questions
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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Assume there are 475 million people in the United States, 175 million of which make up the labor force. If 16 million are unemployed, what is the unemployment rate?
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An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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