A company is late in paying ​the city $10 comma 700 in property taxes. It will be assessed 18​% interest for late property tax payment. Find the total amount it needs to pay off both the taxes and the interest charge.

1 answer

To find the total amount the company needs to pay off both the taxes and the interest charge, we first need to calculate the interest charge.

Interest = Principal x Rate x Time
Interest = $10,700 x 0.18
Interest = $1,926

Total amount to pay = Principal + Interest
Total amount to pay = $10,700 + $1,926
Total amount to pay = $12,626

Therefore, the company needs to pay a total amount of $12,626 to settle both the taxes and the interest charge.