If Nathan sells now, after paying a **commission of $160** and **margin account interest** of $90, he will lose <u>**$650**</u>.

<h3>What is buying on margin?</h3>

**Buying on margin** is a situation when an **investor** buys an **asset **by <u>borrowing the balance </u>from the **brokerage firm**.

With **buying on margin**, the **investor** pays part of the investment cost while the remaining is met by the **broker**.

<h3>Data and Calculations:</h3>

Cost of 200 shares at $40 per share = $8,000

Investor's cash = $5,000

Margin purchase = $3,000

Interest rate = 6%

Interest amount = $90 ($3,000 x 6% x 1/2)

Commission = $160

Total amount spent = $8,250 ($8,000 + $90 + $160)

Total amount realized from sale = $7,600 ($38 x 200)

**Loss from sale = $650 **($7,600 - $8,250)

Thus, if Nathan sells now, after paying a **commission of $160** and **margin account interest** of $90, he will lose <u>**$650**</u>.

Learn more about **margin accounts** at brainly.com/question/17328883

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