Question

If Vance borrows an additional $3,600 when he has $400 of his own money to invest, by what factor will his losses or profits be multiplied?

Answer 1

Multiplied by 10

Explanation:

Given that Vance borrows an additional $3,600 when he has $400 of his own money to invest.

Thus if he has own money he would invest 400 getting a profit of x say

If he additionally borrows he would invest 400+3600 =4000 getting a profit of 10x

Thus we find that whether profit or loss would be multiplied by a scale factor of 10 exactly.