Explore BrainMass

Explore BrainMass

    Margin Calculation Problem

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:43 pm ad1c9bdddf
    https://brainmass.com/business/finance/margin-calculation-problem-150043

    Solution Summary

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

    $2.19

    ADVERTISEMENT