I need help with the math for some reason i`ve forgot PLEASE HELP ME!

Beginner Questions
1

Hello,

So there is this trading product money-making machine. I`ve done some of the rough calculations, but it still needs some work to be done. The system says to have made 1500% in 7 years. That is about 48% with compounding (which is also what they did).

The problem is that it`s spread betting, which is not taxed in the UK.

I live in Romania, where we have a tax on profits of 16%. If I invest 1000 and make 480$ in year 1, how do I calculate how much I have to pay taxes in %?

Do I take 480$, multiply it by 0.84, and that will be equal to about 400$.

Is that how I do it? And, when I punch in the numbers on my compound calculator, do I calculate it with 40% instead of 48%, and I can have it compound with 40%, and that will also account for taxes?

So it means I make yearly a clear profit of 40% after paying taxes and I can then use the compound calculator and have my money add up with 40% instead of 48%(which would be the total profit without taking into account taxes).

Thank you

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I doubt if anyone here is qualified to be a Romanian tax-advisor!

But …

If you invest $1,000 and make 48% profit ($480) over the year, that year’s tax at 16% should be $76.80, because you pay tax on profits and $76.80 is 16% of $480.

The net profit, after tax, is $480 - $76.80, which is $403.20, which is a 40.32% return on the $1,000.

That’s my guess.

Be extremely careful, Bogdan. The chances of just losing the $1,000 are high, in my opinion. It’s just not, realistically, as easy as this.

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Do you believe it?

Why are they seeking investment?

Hard to tell, but certainly you’re right to be suspicious!