You purchased 200 shares of a non-dividend paying stock at $50.00 per share using 50% margin at a 10% annual interest rate. A year later you sold the stock for $45.49 and paid your annual interest on the margin loan. You paid $45 in commission in total. What was your total loss on this investment?

HINT: This question is tough because there are multiple sources of the total loss on this investment: the loss in the investment's value + the margin interest + commission paid. The loss in the investment's value is the number of shares * the loss per share. The margin interest owed is the interest rate * the amount borrowed. The commission is stated. Add all three sources to get the total loss. Buying stock on margin (borrowed money) is very risk and can result in large losses if the investment's value declines!