USA | RCR - 8/25/2023 21:18
Trying to make an apples to apples comparison.
Interest generated is taxed. Fact.
So to say you are getting 5% net gain is False.
5% less taxes. 20% would be a cheap tax bracket.
Now we are at the base comparison for apples to apples.
Be decent, jagoff.
Say you have $10,000 principal payment due on Dec 31, 2024 that you pay early on Jan 1, 2024 and loan interest is 3%.
$10,l000x 3% = $300 less interest paid x 20% = $240 after tax $
$10,000x 5% = 4500 x 20% tax = $400 after tax $
$400 - $240= $160 free money
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