Question

Jennifer Jolie, 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 char ge of 8% simple interest on the unpaid taxes of $4,100. Calculate the
penalty. (Remember that the government uses exact interest.)

Answer 1

There are 207 days from 4/15 to 11/8, so interest will be
.. I = P*r*t
.. I = $4100*0.08*(207/365) = $186.02