Ina Purchased 600 Shares of Detroit Motors Stock at a Price

question 100

Multiple Choice

Ina purchased 600 shares of Detroit Motors stock at a price of $65 a share. The initial margin requirement is 65 percent and the maintenance margin is 30 percent. The effective interest rate on the margin loan is 5.85 percent. How much margin interest will she pay if she repays the loan in seven months?

• A) $387.29
• B) $401.32
• C) $460.28
• D) $580.42
• E) $687.96