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You have a chance to invest $100,000 in a 1-year investment. You can borrow $20,000 of the money from a friend at a cost of
You have a chance to invest $100,000 in a 1-year investment. You can borrow $20,000 of the money from a friend at a cost of 10% and use $80,000 of your own money. There are no taxes. With this arrangement, you expect a return of 24% on your $20,000 investment. What is your return treating the $100,000 as your investment amount?
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