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.= (615.33*8.4*105)/(100*365) = (542,721.06)/(36500) =\$14.87`