Problem $4-06$

Barbara buys $90$ shares of DEM at $$28\mathrm{.}00$ per share and $240$ shares of GOP at $$45\mathrm{.}00$ per share. They buy on margin and the broker charges interest of $5$ percent on the loan.

a$.$ If the margin requirement is $50$ percent, what is the maximum amount they can borrow? Round your answer to the nearest cent.

$

b$.$ If they buy the stocks using the borrowed money and holds the securities for a year, how much interest must they pay? Round your answer to the nearest cent.

$

c$.$ If after a year they sell DEM for $$20\mathrm{.}00$ per share and GOP for $$33\mathrm{.}00$ per share, how much did they lose on their 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 they 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.

$\%$