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You Obtain a Margin Loan of $18,000 to Purchase Stocks

Question 86

Multiple Choice

You obtain a margin loan of $18,000 to purchase stocks. The effective interest rate on the loan is 7.8 percent. If you repay the loan in 3 months, how much interest will you pay?


A) $275.00
B) $243.13
C) $341.18
D) $326.34
E) $376.54

Correct Answer:

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