Correct!
Incorrect!
Let's calculate everything in turn. We put $ 100 into the bank and we get 20% interest.
20% of $100 = $20
So we have $120 in our bank account.
The government takes 20% of the total amount we currently have.
20% of $120 = $24
120 - 24 = $96
We have lost $4 on this operation.