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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