MindTap , Cengage Lear Sam Secure https://ngcengage.com/static/nb/ui/index.html?
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MindTap , Cengage Lear Sam Secure https://ngcengage.com/static/nb/ui/index.html?nbld=822883&nbNodeld-316828766;&eISBN;:9781 33740304741&parentid;=316828808 ?Apps D CofC Bookstore @ OAKS ? Blackboard a CMAIL M McGraw Hill Conne VHL Central (Spanis ® YouTube XFINITY XFINITY Stream Star Online Bank - Wells Fargo MS EX MINDTAP Sam Rosa, ? Week 4 Homework - Chapter 4 Due Today at 6 PM EDT Assignment: Week 4 Homework Chapter 4 Assignment Score: 85 00? Save Submit Assignment for Grading Questions Problem 4-06 sQuestion 13 of 20 Check My Work (No more tries avnilable) 12 O 13. 14. Problem 4-06 15. O | Barbara buy$ 70 shares of DEM at $30.00 a share and 240 shares of GOP at $38.00 a share. She buys on margin and the broker charges interest of 14 percent on the loan. 16. a. If the margin requirement is 53 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent. 17, O 18 b. If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round your answer to the nearest cent. 19. eBook A-Z * $ | 1570.80 c. If after a year she sells DEM for 19.00 a share and GOP for $28.00 a share, how much did she lose on her investment? Use a minus sign to enter the amount as a negative value. Round your answer to the nearest cent. d. What is the percentage loss on the funds she invested if the interest payment is included in the calculation? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places. Hide Feedback 11:52 AM 0 Type here to search 6/23/2018 2Explanation / Answer
a) Maximum amount that can be borrowed = (70*30+240*38)*(1-0.53) = $ 5,273.40 b) Interest = 5273.40*14% = $ 738.28 c) Loss = (70*30+240*38)-(70*19+240*28) = $ -3,170.00 d) Funds invested = (70*30+240*38)*53% = $ 5,946.60 Total loss in $ including interest =-738.28-3170.00 = $ -3,908.28 Percentage loss on funds invested = -3908.28/5946.60 = -65.72%