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Veseljchak [2.6K]
3 years ago
5

Molly Ellen, bookkeeper for Keystone Company, forgot to send in the payroll taxes due on April 15. She sent the payment November

8. The IRS sent her a penalty charge of 6.40% simple interest on the unpaid taxes of $1,400. Calculate the penalty. (Remember that the government uses exact interest.)
Business
1 answer:
stiks02 [169]3 years ago
5 0

Answer: $50.81

Explanation:

Simple interest = principal x rate x time

The principal was $1,400

The rate is 6.40% (0.064)

The chart indicates that it is 207 days from April 15 to Nov 8

Therefore the amount of time is (207/365).

Simple interest = principal x rate x time

Simple interest= $1,400 x 0.064 x (207/365)

Simple interest= $50.81

Therefore the penalty is $50.81

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