Question: An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges 7% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $28.
1) The investor's rate of return was?
2) What is the investor's percentage margin in his margin account by end of year one
Need accurate and complete steps and formulas of this solution.
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