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Suppose you take out a margin loan for $38,000. The rate you pay is an effective...

Suppose you take out a margin loan for $38,000. The rate you pay is an effective rate of 8 percent. If you repay the loan in six months, how much interest will you pay? (Do not round intermediate calculations. Round your answer to 2 decimal places.

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Answer #1

Interest = $38,000 × (1.08)6/12 – $38,000

Interest = $1,490.76   

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