Linda buys $60,000 worth of a stock priced at $75 per share using 55% initial margin. The broker charges 9.875% on the margin loan and requires a 40% maintenance margin

. (1) How much does Linda borrow?

(2) If Linda has interest payable and gets a margin call in 1 year, what must have been the stock's price at the time of the margin call?

(3) If stock price falls to $65 per share in 1 year, what is the remaining margin in percentage in the account? What is the rate of return on the investment?