What is the investors percentage margin

Reference no: EM132417906

An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges 7% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $28.

A) The investor's rate of return was _

B) what is the investor's percentage margin in his margin account by end of year one

Need accurate and complete steps and formulas of this solutions.

Reference no: EM132417906

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