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AER rates after tax?
Comments
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Hi
The simplisest way to work out the interest rate, use an example 6.5% gross
6.5 / 100 x 82.5 =5.3
the net would be 5.3%
There may be a more scientific way, but allowing a difference of 0.1 either way, that get you by x
working to one decimal place you won't be far out. your answer above to two decimal places is 5.36%. it should be 5.20% - a difference of 16 basis points. basic rate tax on savings is 20% not 17.5%. you won't get any points in an exam based on your calcualation above."The Holy Writ of Gloucester Rugby Club demands: first, that the forwards shall win the ball; second, that the forwards shall keep the ball; and third, the backs shall buy the beer." - Doug Ibbotson0 -
I knew the answer wasn't that simple!
I won't ask where the 20% came from but just take it as gospel
Many thanks for all your help!0
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