Question

Ron's property tax is $615.33 and is due April 5. He does not pay until July 19. The country adds a penalty of 8.4% simple interest on unpaid tax. Find the penalty Ron will pay. (assume there are 365 days in a year)

Answer 1

Number of days that attracted penalty is from April 5 to July 19 which is 105 days.

Thus the amount of simple interest attracted by Ron is given by:

$S.I.= \frac{615.33\times8.4\times105}{100\times365} = \frac{542,721.06}{36500} =\ 14.87$