Question

Using a bankers calendar in a Leap year, what would the daily rate be if annual taxes are $2,550?

A. $6.97 daily rate
B. $7.06 daily rate
C. $6.99 daily rate
D. $7.08 daily rate

Answer 1

Using a bankers calendar in a Leap year, the daily rate for annual taxes of $2,550 would be approximately
`\( \text{A. } $6.97 \)` daily rate. (option A)

Step-by-step explanation:

To calculate the daily rate, divide the annual taxes by the number of days in the bankers calendar. In a Leap year, there are 366 days. Using the formula:

`\[ \text{Daily Rate} = \frac{\text{Annual Taxes}}{\text{Number of Days in the Calendar}} \]`

Substituting the values, the calculation is:

`\[ \text{Daily Rate} = (\$2,550)/(366) \]`

This yields a daily rate of approximately $6.97. Therefore, option A is the closest to the calculated daily rate.

Understanding the daily rate is essential for budgeting and financial planning, providing a basis for estimating daily expenses or contributions. In this context, the daily rate for annual taxes helps individuals or businesses allocate funds on a daily basis, facilitating better financial management. The use of a bankers calendar, particularly in a Leap year, ensures accuracy in distributing annual obligations over the entire year, accounting for the extra day in Leap years.(option A)