Answer:
85.66%
Explanation:
Calculation for what is the percentage return on the funds she invested in the stock
First step is to calculate the Cost of the shares
Cost of the shares=160 × $20.50
Cost of the shares= $3,280
Second step is to calculate the Margin
Margin=$3,280 × 0.4
Margin= $1,312.00
Third step is to calculate the Funds borrowed
Funds borrowed= $3,280-$1,312.00
Funds borrowed= $1,968.00
Fourth Step is to calculate Interest paid
Interest paid=$1,968.00 × 0.12
Interest paid= $236.16
Fifth step is to calculate Profit on the stock
Profit on the stock=$4,640.00 - $3,280
Profit on the stock = $1,360
(160*29=$4,640.00)
Last step is to calculate the Return on the investment
Return on the investment:m= ($1,360.00 - $236.16)/$1,312.00
Return on the investment=$1,123.84/$1312.00
Return on the investment=85.66%
Therefore the percentage return on the funds she invested in the stock is 85.66%
