You decide to buy stock on margin. You have $2,500 in cash in a margin account and borrow $2,500 from your broker. You buy 50 shares of stock selling at $100 a share. Assume that the stock rises in value, and 30 days later you sell the stock for $110 a share. Interest on the amount borrowed is 7 percent. The total commission charged is $150. What is the total return on investment? Explain why buying on margin is a risky practice. (Hint: Use the formula in Figure 17.2.)