Question

You buy $1,000 worth of stock with $500 of your own money and $500 borrowed from your broker at 6 percent annual interest. The stock increases in value, and you sell it after 60 days for $1,500. Your broker’s commission to buy and sell is $200. What is your total profit?

Answer 1

Price of stock = 1000
selling price= 1500
commission = 200
interest rate = 6%
loan = 500
just writting the information above as it help to simplify

interest rate for per month = 6% divided by 12= 0.5%
interset amount per month= .5% of 500= 2.5
interest for two month=5
total cost = 1000 plus 200 plus 5
total revenue or selling rice = 1500
profit= revenue minus cost= 295