Answer:
Rate of return on investment = 79.87% Loss
Explanation:
Given:
Sale price = $97,843.75
Face value = $100,000
Initial margin = $2,700
Computation:
Loss on sale = Face value - Sale price
Loss on sale = $100,000 - $97,843.75
Loss on sale = $2,156.5
Computation:
Rate of return on investment = ($2,156.5 / $2,700)100
Rate of return on investment = 79.87% Loss