Chad's property tax is 646.07 and is due April 20. He does not pay until Aug 29. 9.8 % Simple interest on unpaid tax. Find the penalty.
can you please explain how we do this. thank you.
Multiply the amount owing by the annual rate, prorate for the number of days outstanding.
Amount owing = $646.07
Annual rate = 9.8% = 0.098
Number of days outstanding=Apr 20 to Aug 29
= (11+31+30+31+29) days
= 132 days
Penalty = 646.07*0.098*(132/365)
=?