What is his net gain or loss

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Problem

Suppose Kevin has a good deal of equity in his house, and he takes out a home equity loan of $50,000 with an interest rate of 6.5%. Now, he invests $57,000 (the borrowed money plus his original $7,000) in a diversified portfolio of stocks. Suppose the investment earns 15% in the first year, and he then sells the investment and pays off the loan of $50,000 plus interest of $3,250. Get the instant assignment help. What is his net gain or loss?

Reference no: EM133910288

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