An investor puts up $16,000 but borrows an equal amount of money from his broker to double the amount invested to $32,000. The broker charges 8% on theloan. The stock was originally purchased at $40 per share, and in 1 year the investor sells the stock for $45. The investor's rate of return wasMultiple ChoiceOO16.50%8.50%17.00%4.50%

RATE OF RETURNRate of Return is the Ratio between Net Income & Investment.Return on Investment…

Answered: An investor puts up $16,000 but borrows…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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