A broker wants to sell a customer an investment costing $100 with an expected payoff...
70.2K
Verified Solution
Link Copied!
Question
Accounting
A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of $107.6. The customer indicates that a 7.6 percent return is not very attractive. The broker responds by suggesting the customer borrow $90 for one year at 5.6 percent interest to help pay for the investment.
a. What is the customers expected return if she borrows the money?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.