I’m taking an investments class at a community college. We’re using the book Mayo, Herbert B. Investments: An Introduction (MindTap Course List) (p. 27). Cengage Learning. Kindle Edition. In the first chapter I’m looking at a section entitled "Determining the Percentage Return on a Margin Purchase, Including Commissions, Interest Paid, and Dividends Received." It presents the following hypothetical situation:
I can’t figure out how the author came up with $420 as a loan repayment amount for the transaction. I even (cough) fed the statements to an AI, and even the AI believed there had to be a miscalculation somewhere. Does anyone have any insight on this? I’m interested in the concept but my "math is not mathing" here.
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