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I am trying to make sure I understand taxes on compounding interest, please help me wrap my head around this scenario:
I am trying to make sure I understand taxes on compounding interest, please help me wrap my head around this scenario: john and bob both independently invest $1000 at 150% APR with daily compounding interest and a 15% tax rate on their gains. john decides it is safer to put aside 15% of the interest gained each day to cover the taxes and compound the remaining 85%. bob decides it is more profitable to compound 100% of the daily interest gained and just keep trac...
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