2006-10-20 05:08:54 · 9 answers · asked by Jerry M 1 in Business & Finance ➔ Investing
before or after taxes?
2006-10-20 05:32:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
None of you have a clue. If it makes 8% yearly you have to subtract the taxes. The taxes very depending on where you are located, and whether you make the 8 after 12 months - so the earning is capital gain assessed or if under 12 months income tax assessed.
Then in terms of what the $number if worth it depends on inflation. SO you should adjust the outcome by inflation after tax to see what it is really worth ... not nearly as much as you first thought!
If you want to make the return tax free then you can select exempt investments or choose an IRA .. to defer tax and therefore you can compound the returns tax free until you exit the investment.
But why would yo settle for just 8% per annum when writing covered calls you can earn 4% per month?!
2006-10-23 22:21:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The correct answer is $2,206,124.37.
Now, if the interest on the uniform monthly contributions is compounded monthy at 8% per year, instead of annually, then the effective monthly rate becomes 0.6434%. This is because 0.6434%/month gives an APY of 8%/year. Compounding this income stream monthly and adding to the future worth of the original amount gives a grand total of $2,226,707.72.
2006-10-20 13:51:22 · answer #3 · answered by roger_v_kint 3 · 0⤊ 0⤋
This is a simple compound interest question. Ask your math teacher.
Take $650,000 and multiply it by 1.08. This is what you will have after one year if you add nothing else. Now add the $30,000. This is what you will have after one year of interest and added payments. Next, multiply this first result by 1.08 and add the $30,000 twelve times over. There is a formula for this, but I don't know it offhand. Doing it by hand shows you how fast your money adds up each year. I'm going to guess the final result is somewhere near $5 million...
2006-10-20 12:53:21 · answer #4 · answered by christopher s 5 · 0⤊ 1⤋
Actually my handy HP calculator comes up with $2,293,473.93. Good luck
2006-10-20 17:14:14 · answer #5 · answered by Jennifer G 2 · 0⤊ 0⤋
8 million 784 thousand.
2006-10-20 12:17:01 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Assuming that your interest is compounded yearly (most interest is) then in twelve years you will have $1,684,253.39
2006-10-20 12:52:26 · answer #7 · answered by jthomas1279 2 · 0⤊ 1⤋
your interest alone earns you more money than I make
2006-10-20 12:14:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
$7848000
2006-10-20 12:18:21 · answer #9 · answered by moglie 6 · 0⤊ 1⤋