Question: Margin Interest Suppose you take out a margin loan for $30,000. The rate you pay is an 8.4 percent effective rate. If you repay the

Margin Interest Suppose you take out a margin loan for $30,000. The rate you pay is an 8.4 percent effective rate. If you repay the loan in six months, how much interest will you pay?

Margin Interest Suppose you take out a margin loan for $39,000. You pay a 7.2 percent effective rate. If you repay the loan in two months, how much interest will you pay?

Annualized Returns Suppose you hold a particular investment for seven months. You calculate that your holding-period return is 9 percent. What is your annualized return?

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