**Question:**

Hi, I am a bit confused with this question which was given in schweser: An investor bought a stock on margin. The margin requirement was 60%, the current price of the stock is 0, and the investor paid 0 for the stock 1 year ago. If margin interest is 5%, how much equity did the investor have in the investment at year-end? A) 67.7% B) 73.8% C) 60.6% Can someone help me with this question?

**Answer-1**

To find out how much of your position is equity, you need to use the formula:
Equity/Total Position Value
Now, one year ago, we paid 60%*0 = 0, and the remaining 0 was borrowed.
The interest paid for borrowing 0, is 5%*0 =
Thus, the numerator = 0-0- = 9
The denominator = 0
% Equity in the position = 59/80 = 73.75%

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