An investor purchases 1000 shares of a company at Ghs20 per share using his own equity of

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Question:

An investor purchases 1000 shares of a company at Ghs20 per share using his own equity of Ghs 10,000 and borrowing the rest from his broker at 20% per annum. If all the shares were sold one year later at Gh 28.50,

Calculates:

a) The amount of money borrowed from the broker

b) The return on his equity taking into consideration all brokerage fees paid amounting 2.5% of the value of investment both for buying and selling of the investment.