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Margin Calculation Problem

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Phoenix Trader opens a brokerage account and purchases 600 shares of Widget Company at $50 per share. He borrows $6,000 from his broker to help pay for the purchase. The interest rate on the loan is 8%. What is the margin in Phoenix's account when he first purchases the stock?

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Solution Summary

This solution provides a detailed step by step solution to the given finance problem involving margin calculation.

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