Investment estimate of the day
Today's situation
You put 1150 away every month for 60 months, earning 1.1 per cent a month. Inflation runs at 0.2 per cent a month, and 20.0 per cent of the gain goes to tax at the end. How much is the final amount worth in today's money?
Type your answer with two decimals. Within one per cent counts as close, and the arrow points from your answer to the right one.
Yesterday's answer6745.01
How does the investment estimate of the day work?
Everyone gets the same situation today, and it changes at midnight UTC. Five numbers are given: how much goes in every month, for how many months, the monthly return, the monthly inflation and the share of the gain taken as tax. Work out what the final amount is worth in today's money and type it.
You have eight tries, and each one says whether the right answer is higher or lower than yours. The answer is not in the page; only the situation is.
Why is the answer in today's money?
Because that is the number that answers the question a saver actually has. The nominal amount always looks bigger, and the whole difference between the two is what inflation took. Over a long run the two can be far apart, and seeing that is the point of the exercise.
Is this advice about where to invest?
No, and it is built so it cannot be. There is no real asset here, nothing is compared with anything, and no result is called good or bad. It is a situation with five numbers and one exact calculation on top of them.
Where does the tax rate come from?
From the statement itself, like every other number here. It is a parameter of the problem, not a claim about what any country charges today: a rate written into the code would be out of date the first time a law changed.
Does sharing my result spoil the answer?
No. The shared square carries only the colours of each try, never the numbers you typed and never the arrows, because an arrow tells the reader whether the answer is above or below your try.