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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 10.80% simple interest on the unpaid taxes of $5,600. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Respuesta :

Answer:

  • $342.99

Step-by-step explanation:

Given

  • Penalty charge = 10.80% simple
  • Interest amount = $5600
  • Period = April 15 to November 8

To find

  • Amount of penalty

Solution

Formula

  • Penalty = Interest amount*penalty charge*time

Time period

  • April 15 = 105
  • November 8 = 322
  • Difference = 322 - 105 = 207 days

Calculation of penalty

  • $5600*0.108*207/365 = $342.99