Suppose you purchase 800 shares of stock at $61 per share with an initial cash investment of $15,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate.

Calculate your return on investment one year later if the share price is $69. Suppose instead you had simply purchased $15,000 of stock with no margin. What would your rate of return have been now?

Rate of return: ________

Without margin, Rate of return: ________