John opens a brokerage account and purchases 500 shares of Great Deal Corp. at $30 per share. He borrows $6,000 from his broker to help pay for the purchase. The interest rate on the loan is 7%.

1. What is the margin in Johns account when He first purchases the stock?

2. If the price falls to $19 per share by the end of the year, what is the remaining margin in his account?

3. If the maintenance margin requirement is 30%, will he receive a margin call?

4. What is the rate of return on His investment?