John forgot to pay his $364.00 income tax on time. The IRS charged a penalty of 12% for the 55 days the money was late. Find the penalty that John paid. (Use a 365 day year.)
What is
.12(364)(55/365) ?
.12*364=43.68
55/365=0.150684
43.68*0.150684=6.581 Round it off to 6.58
To find the penalty that John paid, we need to calculate the amount for the 55 days the money was late with a penalty rate of 12%.
First, let's find the penalty rate for one day:
Penalty rate = 12% / 365
Now, we can calculate the penalty for the 55 days:
Penalty = Penalty rate x Amount
Penalty = (12% / 365) x $364.00
Let's calculate the penalty:
To find the penalty that John paid for his late income tax payment, we need to calculate the amount of penalty per day, and then multiply it by the number of days the money was late.
First, let's calculate the penalty per day. We are given that the penalty rate is 12% of the unpaid tax. So, the penalty per day can be calculated as follows:
Penalty per day = (12% / 100) * $364.00
We can simplify this calculation:
Penalty per day = 0.12 * $364.00
Penalty per day = $43.68
Now that we know the penalty per day is $43.68, we need to calculate the number of days the money was late. In this case, it is given that the money was late for 55 days.
Finally, we can calculate the penalty amount by multiplying the penalty per day by the number of days the money was late:
Penalty = Penalty per day * Number of days
Penalty = $43.68 * 55
Penalty = $2402.40
Therefore, the penalty that John paid for his late income tax payment is $2402.40.