Question

woody's cafe real estate tax of $1,110.85 was due November 1, 2013. Due to financial problems, Woody was unable to pay his cafe's real estate tax bill until January 15,2014. The penalty for late payment is 8 1/4% ordinary interest. answer the following questions: (a) how much is the penalty woody must pay and (b) what did woody pay on january 15? round all answers to the nearest cent.

Answer 1

8 1/4=0.0825 or 8.25%

a). $1,110.85 * 8.25%= $91.65

b). $1110.85 + $91.65= $1,202.50

Answer 2

Answers:

The answers are:

(a) $91.65 (or $91 and 65 cents).

(b) $1,202.50 (or $1,202 and 50 cents).

Step-by-step explanation:

The real estate tax = $1,110.85.

The penalty for late payment = 8 ¼% = 8.25%.

(a) Therefore, the penalty that Woody must pay = 8.25% of $1,110.85 = 0.0825 × $1,110.85 = $91.65

(b) On January 15, 2014, Woody paid the sum of the cafe real estate tax ($1,110.85) and the penalty ($91.65) = $1,110.85 + $91.65 = $1,202.50.