You pay 10% of the total price of the stock and borrow the rest. Stock in American Airlines cost $200 a share, I have $2000 dollars but I want 100 shares.
a) How much do I pay?
b) How much do I borrow?
c) What's the total?
d) Number of shares?

Question

You pay 10% of the total price of the stock and borrow the rest. Stock in American Airlines cost $200 a share, I have $2000 dollars but I want 100 shares. 
a) How much do I pay?
b) How much do I borrow?
c) What's the total?
d) Number of shares?

triciaal · Answer

100 shares @ $200 each means cost is 100x 200 = $20000
pay 10% of 20000 = (10/100)(20000) = $2000
borrow  (100%-10%)= 90%
90% of 20000 = (90/100)(20000)     (same as 20000-2000 the total cost - what you pay)
so you borrow $18000

$2000/$200 per share = 10 shares