Interest calculations

Thomask

I see. There's the option to pay 2%, rather than 10% tax, also. What would the most profitable option be if I were to pay 2% tax?

Thomask

Anyone able to assist?

Thanks

Thomask

Bummmp!
(In case anyone can help!)

sloughflint

What do you not understand,Thomask?
Milarky has given you the figures for 10%.
For 2% just multiply the gross figures used in post 2 by 0.98 instead.
Have another look at posts 2 and 6 unless I haven't understood what you are after.

EDIT: Figures for 2% tax
1)8.72%
2)8.85%
3) 8.87%

Thomask

Thanks, another option would be 8.80% Gross per annum for 6 months with interest paid on maturity.

I have learning difficulties and struggle understanding basic concepts but am thankful for your help.

sloughflint

Thomask wrote: »

Thanks, another option would be 8.80% Gross per annum for 6 months with interest paid on maturity.

I have learning difficulties and struggle understanding basic concepts but am thankful for your help.

Oh my goodness! I'm sorry about how my earlier post read. Please don't put yourself down. I remember going into a bank years ago to enquire about compounding and no-one was able to answer my question!!
Ok this post is difficult to compare with the others since you can't foresee what the situation would be in 6 months time. Assuming the same deal is available for a further 6 months then I calculate that being equiv. to 8.81% after 2% tax.
You originally posted early November. Time for a quick decision?

Thomask

Yes, assume the second 6 months would be at the same rate. based on that, option 3 (Invest $20,000NZD for 12 months at 8.90% gross. Interest won't compound and will be paid on maturity) would still be the better of the 4 options?

sloughflint

Thomask wrote: »

Yes, assume the second 6 months would be at the same rate. based on that, option 3 (Invest $20,000NZD for 12 months at 8.90% gross. Interest won't compound and will be paid on maturity) would still be the better of the 4 options?

Yes. That one.